Samsung Wins $1bn Oil Contract

Iraq’s cabinet announced that it had approved a $998 million oilfield service contract on Tuesday with a South Korean company for the West Qurna 2 oilfield, according to Reuters.

While the memo did not name the company, Samsung Engineering was the only South Korean company on the final shortlist.

Iraq and its partners, Russia’s Lukoil and Norway’s Statoil, had shortlisted five companies to compete for the West Qurna Phase Two oilfield development contract.

The other companies were Saipem, SNC Lavalin Group Inc, Punj Lloyd Ltd, Globalstroy Engineering and South Korea’s Samsung Engineering, an oil official said.

The tenders announced were for the construction of an oil export pipeline, a tank farm at Tuba, a power distribution station and an associated gas processing plant, and also an oil gathering system, central processing facilities and a water supply system.

They are expected to help production at the field hit 150,000 barrels of oil per day (bpd) in January 2013, an Iraqi oil official said.

(Sources: Reuters, AKnews)

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