LUKOIL SIGNS CONTRACTS FOR WEST QURNA-2 FIELD CONSTRUCTION IN IRAQ

Thursday, March 22, 2012

LUKOIL Mid-East Ltd (West Qurna-2 project operator) has signed several major contracts for the West Qurna-2 field infrastructure development in Iraq based on the tender results.

The contract with Samsung Engineering (Korea) sets out 29 months to construct 5 well pads with 67 development wells, 5 gathering lines, a central processing facility (CPF), a water intake on the Euphrates River and a water pipeline to the CPF, a power supply system and a field camp. The contract also covers utilities for water treatment, distribution and disposal (including formation water), fuel gas extraction, instruments, drainage systems, commercial oil storage tanks and pumping facilities, administration buildings, workshops, warehouses, chemical analytical laboratory, fire station, central control room and other facilities.

ENKA Insaat (Turkey) has been contracted for construction of a gas turbine power plant. This facility includes three bi-fuel industrial gas turbines by General Electric (USA) 42 MW each, a gas treatment unit with gas compressors, a diesel fuel loading, storage and distribution system with two tanks 2,500 cubic meters each, a power distribution system with step-up, step-down and auxiliary transformers and switch gears, a diesel generator, a control room, utility and infrastructure installations. The works are planned to be completed within 27 months.

Entrepose Projets/Rosco (France/Jordan) has been contracted for extension of the existing tank farm at the Tuba oil export terminal, namely construction of three oil storage tanks 66 thousand cubic meters each as well as state-of-the-art automation, remote control, power supply and fire fighting systems. The works are planned to be completed within 22 months.

These are turnkey contracts that cover engineering, construction and supply of required materials and equipment by the contractors.