Russia’s Lukoil is evaluating technical proposals for the construction of central production facilities at the West Qurna phase-2 oil field in the south of Iraq. Evaluations are expected to be finalised in early June.

Engineering, procurement and construction (EPC) bids were submitted on 31 March, but commercial proposals have not yet been opened.

Bidding firms include;

• Globalstroy Engineering (Russia)
• Samsung Engineering (South Korea)
• Saipem (Italy)
• SNC Lavalin (Canada)
• Punj Lloyd (India) with Toyo Engineering (Japan)

France’s Technip is conducting front-end engineering and construction (feed) work for the scheme. West Qurna 2nd stage field development

Lukoil issued four tenders for EPC deals in September 2010 as part of its development of the 12.9 billion-barrel field, covering oil-gathering systems, processing facilities and a water supply system, along with an oil export pipeline, storage facilities, a power station and an associated gas processing plant.

As the operator of the field, Lukoil holds a 56.25 per cent stake in the 20-year technical service contract. Norway’s Statoil has a 18.75 per cent stake, while two state-owned companies, South Oil Company and North Oil Company share the remaining 25 per cent.

The consortium agreed in February 2010 to lift production to 1.8 million barrels a day (b/d) for a remuneration fee of $1.15 a barrel for each additional barrel from initial production.

Lukoil expects to start production in 2013 at 150,000 b/d, rising to 400,000 b/d by 2014 (MEED 24:4:11).