Three Firms Compete For Iraq Zubair Field Prize
21 Outubro 2011 - 7:29AM
Dow Jones News
Giant drilling companies Schlumberger AG (SLBS.VI) and
Weatherford International Ltd. (WFT) as well as UnaRos, a joint
venture of Italy's Rosetti Marino and privately held Unaoil, are
competing for a crucial oil field facilities contract from an Eni
SpA (E)-led group that will boost oil production from Iraq's Zubair
oil field by some 450,000 barrels a day, contractors said.
They said Eni has been studying commercial and technical bids
from the contenders, with an award expected in coming weeks.
"We have sent our final proposals and they (Eni and partners)
will come back to us if there are any questions," a company
executive told Dow Jones Newswires on the sideline of an Iraqi
energy meeting in Istanbul, organized by the London-based CWC
Group, late Thursday.
The contract involves building nine processing units, each with
an output of 50,000 barrels a day. The initial production
facilities, or IPF, tender will enable the Eni-led consortium to
dramatically expand output from Zubair after about two years.
Contractors estimate the value of the IPF contract at between $600
million and $800 million.
Eni is already pressing ahead with other aspects of the project.
Three contractors are competing for the revamp of existing
degassing stations in Zubair as part of early development work
designed to handle associated gas from the giant field in southern
Iraq.
South Korea's STX Corp. (011810.SE), and Italy's Techint and
Tecnimont have submitted offers. The revamp package--aimed at
rehabilitating and upgrading the existing facilities--will handle
150,000 barrels a day of oil production from Zubair.
Once the IPF and the degassing upgrade packages have been
awarded, Eni will turn its focus to tackling bids for three
degassing stations for Zubair North, Zubair South and Zubair
Central.
Contractors said it will cost $2.4 billion to build the gas-oil
separation units for Zubair Central while the cost for Zubair North
is estimated at $1.6 billion.
The new degassing stations will handle rising crude volumes from
Zubair and send gas supplies to the Iraqi state South Gas Company,
which will hand over some of the gas to the south gas utilization
project that was awarded in July to Royal Dutch Shell PLC (RDSA)
but is still awaiting Iraqi government approval.
The 20-year Zubair service contract was awarded at an Iraqi
licensing auction held in 2009 to the Eni-led group which also
includes U.S. Occidental Petroleum Corp. (OXY) and Korea Gas Corp.
(036460.SE), or Kogas.
The Zubair field--one of the largest Iraqi oil fields--was
producing 195,000 barrels a day before it was awarded to Eni-led
group. Production has since reached about 300,000 barrels a day and
is expected to rise to a plateau level of 1.125 million barrels a
day in 2016 as the full field development plan is completed.
By Hassan Hafidh; Dow Jones Newswires; +962 799 831 831;
hassan.hafidh@dowjones.com
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