Russia's LUKOIL announces 4 tenders in Iraq

Russia’s LUKOIL announces 4 tenders in Iraq

LUKOIL, Norway's Statoil to develop West Qurna-II deposit.

September 20, 2010 3:15 by Reuters

Russia’s No. 2 oil producer, LUKOIL , and partners have issued four new tenders for construction and energy projects at Iraq’s West Qurna Phase Two oilfield, the company said Monday in a press statement.

The tenders are for the construction of an oil export pipeline; a tank farm at Tuba; a power distribution station and an associated gas processing plant; and an oil gathering system, central processing facilities and a water supply system.

LUKOIL, which along with its consortium partner in the Iraq project, Norway’s Statoil , set a deadline of Dec. 4 for companies to submit their final bids for the contracts, according to the statement.

LUKOIL and Statoil sealed a 20-year deal to develop the second phase of West Qurna, a 12.9-billion-barrel oilfield in southern Iraq in an auction in December, pledging to boost output to 1.8 million barrels per day (bpd) at peak production.

Production at West Qurna will hit 120,000 bpd in 2012, a senior executive from Statoil said in April. [ID:nLDE63Q0R4]

LUKOIL’s development contract is part of a series of deals signed by Iraq with global oil companies in a bid to boost its crude output capacity in seven years to 12 million bpd, from 2.5 million bpd now.

(Writing by Jessica Bachman; editing by James Jukwey)