WorleyParsons to provide project management services
November 2012, OAO Lukoil (Lukoil) selected the Australian engineering company WorleyParsons to provide project management services (PMS) on the next three years for the West Qurna-2 oil field development project in southern Iraq.
Discovered in 1973, the West Qurna-2 oilfield is the second largest undeveloped field in the world.
Located 65 kilometers northwest of Basra, West Qurna-2 holds 14 billion barrels of oil equivalent (boe) mostly concentrated in two pay grounds: Mishrif and Yamama.
The Technical Services Contract (TSC) was signed on the base of $1.15 per barrel remuneration fee.
In June 2012, Statoil decided to withdraw from the joint venture to concentrate on its own projects in the North Sea.
Actually, this West Qurna-2 joint venture is shared between:
– 75% Lukoil is the operator
– 25% North Oil Company
Lukoil awarded main EPC packages for West Qurna-2
Lukoil is committed to reach 1.8 million b/d at plateau production in 2017 for an investment of $25 billion capital expenditure on the period and 500 wells to be drilled.
This plateau production should be ramp up in two phases: Early Oil and Full Development.
The Early Oil should start in 2013 with 150,000 b/d production to end up in 2016 with 800,000 b/d.
Then the Full Development should add 1 million b/d.
– Project Management
– Technical and construction supervision
– Engineering, procurement and construction (EPC) activities.
– Entrepose Projects/Rosco from France and Jordan for the expansion of the tank farm at the Tuba oil export terminal inclduing three storage tanks of 66,000 cubic meters each to be delivered in 2014.
– ENKA Insaat, from Turkey, the gas-fired power plant with three GE bi-fuel gaz turbines of 42MW each, the gas treatment plant including the compressors, the diesel fuel loading storage and distribution system,, the power distribution system, the step downs transformers, switchgears and diesel generators to be delivered in 2014.
With the main EPC packages awarded to Samsung Engineering, Entrepose, and ENKA Insaat, WorleyParsons will execute its project management services contracts for Lukoil West Qurna-2 contract from its offices in Iraq and in the UAE and from the offices of the appointed contractors.