126
39
th
Annual Report
In
Iraq
, the Iraqi government approved a $998 million oil
field service deal awarded to Samsung Group by Lukoil to develop
the West Qurna Phase-two oil field
i
. The deal states that Samsung
would build a central processing facility for oil production in the field,
the central processing facility will be able to produce 500 thousand
barrels of oil per day, work is expected to finish within 29 months.
The deal is part of the initial development plan set by Lukoil and
Statoil and approved by Iraq
’
s oil ministry in 2010 to start production
from the untapped oilfield. The firms pledged to boost output from
the southern field to reach 1.8 million barrels per day, with the first
oil planned for early 2013.
An international consortium led by Gazprom Neft has awarded
Petrofac a $329.7 million deal to develop the untapped Badra Oil
Field. The field is located in Wasit governorate, 160 km southeast
of Baghdad, and extends across eastern Iraq
’
s border with Iran.
Petrofac would build a central processing facility for oil production
in the field. The consortium, which also includes Korea Gas Corp.,
Turkish Petroleum Corp. and Petronas is planning to start first
production from the field by mid- 2013. Gazprom, which holds
40% stake in the consortium, has started drilling in the field in
2011 targeting an estimated proven reserve of 3 billion barrels. It
plans to drill 11 wells in the fields in three years. The consortium
would receive a payment of $5.50 for each barrel extracted from the
field as soon as the field reaches an output of 15 thousand barrels
per day. The total development cost of the project is estimated at
$2 billion, it is planned to reach 170 thousand barrels per day by
2017
ii
.
i
World Oil, 24/3/2012
ii
Oil Review Middle East, 23/2/2012
