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Iraq awards $60m Majnoon facility contract

Baghdad, July 9, 2011

Iraq and partners Royal Dutch Shell and Petronas awarded a contract worth more than $60 million to Turkish firm Enka to install and operate two production facilities at the Majnoon oilfield, an Iraqi oil official said.

The construction and energy company will also install two crude storage tanks and four pumping units which will connect a pipeline network at three well-pads, the official said.

'Under the deal, Turkey's Enka will install two production facilities with a capacity for processing 100,000 barrels per day of crude to be produced from the supergiant Majnoon oilfield,' the official told Reuters.

'Output is expected to hit 175,000 bpd in 2012 and that requires installing new crude facilities and further preparing well-pads to drill new oil wells,' the official said.

The official said Iraq, Shell and Petronas still had to set a date to sign the contract with Enka.

Four companies initially tendered for the deal, including Italy's Saipem and India's Punj Lloyd Ltd .

Shell, Europe's largest oil company, and Malaysia's Petronas won a contract in 2009 to develop Majnoon, one of the world's biggest oilfields. The eventual output target for the field is 1.8 million bpd.-Reuters

Tags: Petronas | Royal Dutch Shell | Iraq | Award | oil contract | Majnoon Oilfield |

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