G4S Wins Lukoil De-Mining Contract at West Qurna 2

Russia's Lukoil has awarded a mine clearing contract at Iraq's West Qurna 2 oil field to G4S Risk Management, a division of the London-based G4S Ordnance Management, Lukoil said in a statement sent to Dow Jones Newswires.

Lukoil did not disclose the value of the contract, but said work should finish in early 2011, when oil drilling would start at the project.

It said 60 foreign and Iraqi experts as well as 40 sets of search equipment and 9 vehicles will work on the de-mining operation.

According to the Iraqi Regional Mine Action Committee, more than 27 million unexploded shells and mines remain on Iraq's territory from its war with Iran in the 1980s, but Iraqi authorities said the West Qurna 2 area is not heavily mined.

West Qurna Phase 2 is being developed by the Russian company together with Norway's Statoil. Lukoil holds a 56.25 percent stake in the project, Statoil 18.75 percent and the Iraqi state company holds the remaining 25%.

Under the terms of the 20-year-long service contract, Lukoil and Statoil are required to pump at a rate of 1.8 million barrels a day by 2017, for payment of $1.15 a barrel.

As we reported recently, Lukoil has issued tenders to drill new wells and carry out a 3D seismic survey.

(Source: Dow Jones)

Comments are closed.