Russia’s Lukoil and Norway’s Statoil have started issuing tenders for the multibillion project to develop Iraq’s supergiant West Qurna Phase 2 oil field in southern Iraq, a person familiar with the plans said Sunday, as reported by Reuters.
The “first tender is a 3D seismic survey at the field”, the person said. A second tender calls for drilling between 50 and 60 oil wells, the source said, adding that the drilling will be carried out in stages.
The first stage could be for the drilling of between seven to 10 wells in order to produce up to 120,000 barrels a day, which needs to be achieved by 2012, according to the deal Iraq signed with the two oil firms, the person added.
Lukoil will also issue a series of tenders for surface installations at the field, such as personnel camps, pipelines and production facilities.
Lukoil is said to expect to award these contracts to “big and well-known firms such as Halliburton, Weatherford International, Schlumberger and others.”
These oil services companies are already involved in projects in southern Iraq. Operator Lukoil and Statoil were awarded a 20-year service contract for West Qurna Phase 2 in Iraq’s second licensing round last December. Both promised to get the southern field pumping at a rate of 1.8 million barrels a day for payment of $1.15 per barrel. The development project is one of 11 that Iraq awarded in two licensing rounds last year. If all the companies deliver to the letter of their contracts, nearly 10 million barrels a day of capacity will be added to Iraq’s existing 2.5 million barrels a day by 2017.
(Source: Dow Jones)