UK oil major BP and its partners developing the 18-billion-barrel Rumaila oil field in the south of Iraq have selected a joint venture of the UK’s Petrofac and China Petroleum Engineering & Construction Corporation (CPECC), for a $90m inspection, maintenance and repair contract.
Petrofac’s Offshore Engineering & Operations business will lead the one-year contract, effective from 28 June, covering rotating machinery, degassing stations and cluster stations.
Petrofac will take $63m from the deal. CPECC has already been selected for a $162.5m contract for oil and gas production facilities at the 4.1-billion-barrel Halfaya oil field in the Missan province of southern Iraq (MEED 20:5:11).
As part of the agreement, Petrofac’s staff will be based at CPECC’s accommodation facilities in Rumaila. In March, Petrofac was awarded an engineering, procurement and construction (EPC) contract by UK-Dutch oil major Shell Group for developments at the 12.8-billion-barrels Majnoon field to build early production facilities.
In a consortium with China’s PetroChina, a subsidiary of state-owned China National Petroleum Corporation and Iraq’s State Oil Marketing Organisation (Somo), BP signed a 20-year technical service contract in November 2009 with the South Oil Company.
The partners are required to raise production to 2.85 million barrels a day (b/d) over the next six years, from about 1 million b/d.