Shell and Petronas have awarded Dubai-based Dodsal Group a $106m contract to lay a pipeline at the Majnoon oilfield, an Iraqi oil official said.
Reuters reports that under the deal, Dodsal Group will build a 79-km (50-mile) pipeline to carry oil from the supergiant Majnoon oilfield to a crude storage depot near Zubair in southern Iraq.
The existing 28-inch Majnoon pipeline is outdated and reportedly cannot cope with the projected increase.
"Majnoon's current output is around 63,000 barrels per day, and it's expected to hit 175,000 bpd in 2012, which requires building a new pipeline to handle the output increase," the un-named official said.
(Source: Reuters)
[...] has estimated crude reserves of 12 billion barrels and 9.5 trillion cubic feet of gas.As we reported over the weekend, Dubai-based Dodsal has won a $106m contract for a pipeline at Majnoon.(Source: Bloomberg).report{ border:2px solid [...]