Tenders for drilling and EPC contracts in Iraq’s super giant Majnoon field have been offered by Shell and its Iraqi state partner, South Oil Co. according to a statement given to Dow Jones on Tuesday by Dhiaa Jaafar, South Oil’s head.
Jaafar said that both deals have not yet been awarded but they are “in the process.” He gave no further details.
Separately, the Iraqi oil industry source said that firms including Halliburton, Weatherford International, and Petrofac have been invited to submit bids for these two tenders. He gave no further details.
Shell, which partnered with Malaysia’s state-run Petronas to develop Majnoon, will also award an engineering, procurement and construction (EPC) deal to build various production installations at the field, an Iraqi oil industry source familiar with the project said.
Shell said earlier that it was planning to drill 15 new wells over the next two years at Majnoon, that would help lift production to 175,000 barrels a day by 2012 from the current 45,000 barrels a day.
The Anglo-Dutch super major and Petronas were awarded a contract in December to develop the Majnoon field, which is located in Basra governorate and holds some 12.6bn barrels of proven oil reserves. Shell owns 45% of the venture and Petronas 30%, with Iraq’s state-run Missan Oil holding 25%.
Halliburton and Weatherford are already involved in oil services projects in southern Iraq. Petrofac said last month that it was establishing a presence in Iraq as it moves to increase its massive order book of projects.
The Iraqi cabinet last week ratified a $12.5bn deal with Shell and Mitsubishi to develop a gas-structure project in southern Iraq, paving the way for a final signature of the deal.
Iraqi officials said that the venture could produce up to 2.5bn cubic feet a day when the project is developed.
Shell also partnered with ExxonMobil won a deal to develop the prized West Qurna Phase 1 oil field in southern Iraq. ExxonMobil holds the bulk of stakes in that field.
