Samsung Engineering officially signed a contract, worth $998 million with Russia’s Lukoil for the project management, engineering, procurement, supply, transportation, construction, pre-commissioning of facilities comprising the Oil Gathering System, Central Processing Facilities and Water Supply System for the development of the West Qurna (Phase 2) Contract Area and thereafter to provide assistance to LUKOIL with its carrying out of the commissioning and start up.
LUKOIL Mid-East General Director Iskander Nasyrov and Samsung Engineering President & CEO Park Ki-Seok met in Iraq on Thursday to ink the new partnership.
The Facilities to be built in the southern part of Iraq near Basra city for the development of the West Qurna Phase 2 oilfield and will process 400,000 barrels of oil and gas a day. Samsung Engineering will execute the contract on a lump sum turnkey basis and expect to do so within 29 months.
The contract is an important milestone because it is the company’s first deal with LUKOIL, Russia’s largest private oil company and one of the most prominent oil majors in the world. In addition, the facilities will include Iraq as a new geographical market for Samsung Engineering.
At the signing Samsung Engineering President & CEO Park Ki-Seok emphasized the importance of this contract by saying, “We look forward to our critical role of increasing oil production and contributing to the development of Iraq. We are humbled by this opportunity and will make every effort to exceed the expectations of our respected clients.”
