Russia’s Lukoil has set a 31 January deadline for international engineering and construction firms to submit bids for a deal to build early production facilities (EPF) at the West Qurna-2 field in Iraq.

Italy’s Saipem, the UK’s Petrofac, France’s Technip and Japan’s JGC are among the firms invited to submit bids, according to a source close to the project.

In September, the Russian firm issued tenders for four engineering, procurement and construction (EPC) deals. Bidders were given until 4 December to submit bids. The deals include:

  • Oil gathering and treatment systems and water supply system
  • Export pipeline to the Tuba terminal in Basra
  • A storage tank farm at the terminal
  • Power distribution stations and gas processing units

The consortium agreed in February last year to a plateau production target of 1.8 million b/d and a remuneration fee of $1.15 a-barrel for each additional barrel from initial production.  

Under the development and production service contract signed with South Oil Company, the Lukoil-led consortium must hit 120,000-barrels-a-day (b/d) by the end of 2012. The field development plan provides for the drilling of more than 500 wells.

Lukoil holds a 56.25 per cent operator stake in the 20-year technical service contract, with a possible extension of five years. Norway’s Statoil takes a 18.75 per cent stake, while two state-owned companies, South Oil Company and North Oil Company share the remaining 25 per cent (MEED 2:2:10).

In October 2010, Dubai-based Terraseis Trading won a nine month 3D seismic exploration deal covering 540 square kilometres at the field.  The pilot survey was scheduled for the beginning of December.