Foster Wheeler and Kentz at FEED work on Majnoon
The international oil company (IOC) Royal Dutch-Shell (Shell) and its partners, the Malaysia national oil company (NOC) Petronas and the local South Oil Company (SOC or South Oil)) are making major decision to gear up from the previous start-up phase to the full field development (FFD) of the giant Majnoon oil and gas field in the south of Iraq.
Located 70 kilometers north of Basra and covering a surface of 60 kilometers long by 15 kilometers wide, Majnoon is listed among the largest oil and gas fields in the world with estimated in-place reserves of 38 billion barrels.
Since that time the Majnoon oil and gas field has never got a chance to be developed according to its potential because of it geographical position along the Iran boarder.
Number of companies attempted to invest in Majnoon and the succession of wars prevented sustainable exploration and production program.
Transformed in battle field with explosives and land mines all over, Majnoon oil and gas reserves remained nearly untouched until it was awarded to the joint venture of Shell, Petronas and South Oil in 2009 as the result of the second licence round.
In signing a technical services contract (TSC) with Baghdad Government, Shell and its partners accepted only $1.39 per barrel as remuneration fees on the production with a targeted plateau production of 1 million barrels per day (b/d) by 2017.
– Shell 45% is the operator
– Petronas 30%
– South Oil 25%
Until 2012, Shell and its partners invested more than $2 billion capital expenditure to secure and clean up Majnoon and convert it into a safe exploration and production area.
Majnoon Oil Field Commercial Production project to go
In that perspective the Swiss-based Foster Wheeler and the Irish engineering company Kentz formed the joint venture Foster Wheeler Kentz Energy Services DMMC to win the Majnoon Oil Field Commercial Production Project engineering contract.
According to the terms of the contract, Foster Wheeler and Kentz will provide engineering services for the:
– Detailed design
This engineering services contract covers the:
– Revamping and upgrade of the existing facilities
– Construction of the new faclities
In doing so, Shell, Petronas and South Oil confirm their investment program in the Majnoon Oil Field Commercial Production project in the perspective of 2017 with the support of the Foster Wheeler and Kentz joint venture.