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Samsung Bags Deal in Iraq
Iraq and Russian Lukoil have awarded a US$998 million deal to South Korea's Samsung Group to develop the supergiant West Qurna 2 oil field. The Iraqi government confirmed the award in a statement on Wednesday, according to a report. No further details were immediately available.
As reported in October, Lukoil had reached the final stages of plans to dish out a contract bonanza relating to the development of the massive field. Contracts to build the central processing facilities, export pipelines, tank farms and utilities for the greenfield project were all understood to be up for grabs.
In June, an official said five companies were in the frame for the business, including Samsung Engineering. Saipem, SNC Lavalin, Punj Lloyd and Globalstroy Engineering. The first phase of the development, originally slated for late 2012 and now on course to start in late 2013, is targeting initial production of 400,000 barrels per day.
The project ultimately aims to produce 1.8 million barrels per day from the field in southern Iraq. Earlier this month, Statoil was reportedly reconsidering its role in the development over security concerns in the wake of the withdrawal of US forces, although the Norwegian state player declined to comment on the rumors its 18.75% stake could be sold.
