By John Lee.
Foster Wheeler Kentz Energy Services DMCC, the Dubai-based joint venture company of Foster Wheeler and Kentz, announced today that it has been awarded framework contracts by Shell Iraq Petroleum Development B.V. (“Shell”), for the provision of engineering, procurement and related services for the Majnoon Oil Field Commercial Production Project in Iraq.
Shell is the operator of the Development Production Services Contract for the Majnoon field, which is located in southern Iraq, approximately 70 km north of Basra City.
The services, including concept selection, front-end engineering design, detailed design and contract and procurement services, will be provided primarily by Foster Wheeler Kentz Energy Services DMCC, supported by the Foster Wheeler and Kentz organizations.
The contracts with Shell will run for two years, with an option to extend for an additional year, and will provide a framework for a number of packages of work to be executed, covering new facilities and rehabilitation or upgrade of existing facilities.
Steve Spicer, General Manager of Foster Wheeler Kentz Energy Services DMCC said the contract represented confidence in the joint venture’s combined expertise:
“We established this joint venture in Dubai to bring together the technical expertise, Iraq experience and project execution capability and resources of Foster Wheeler and Kentz to support the international oil companies in realizing their strategically important Iraqi investment plans.This award is a strong vote of confidence in the added value that this combination can deliver.”
“There are some unique challenges in Majnoon,” said Tom Hooft van Huysduynen, Project Director Majnoon Field Development, Shell Iraq Petroleum Development B.V.
“Seamless cooperation with Foster Wheeler Kentz Energy Services DMCC is not only essential in moving forward in safety but also in the delivery of the Majnoon Portfolio.”
About the Majnoon Project
In 2009, following Iraq’s second licensing round for oil production, the government signed a 20-year service contract with international oil companies Shell and Petronas to develop the Majnoon oilfield. The Majnoon field measures around 60 kilometres long and 15 kilometres wide and is estimated by the Iraqi government to hold around 38 billion barrels of oil in place.
Shell is the lead operator in the consortium with a 45% stake, Petronas holds 30% and the Iraqi South Oil Company the remaining 25%.