Iraq, Lukoil Award $998M West Qurna Deal to Samsung

BASRA, Iraq - Iraq and Russia's OAO Lukoil Holding have awarded a $998 million deal to south Korea's Samsung Group to develop the supergiant West Qurna phase 2 oil field, the Iraqi government said in a statement Wednesday.

Government spokesman Ali al-Dabbagh said Samsung would build a central processing facility for oil production in the field. "Work in the processing facility is expected to finish in 31 months from the start of the work," Dabbagh said following a weekly cabinet meeting.

Lukoil and Norway's Statoil ASA were awarded a 20-year service contract for West Qurna Phase 2 in Iraq's second licensing round held in December 2009. The companies promised to get the southern field pumping at a rate of 1.8 million barrels a day for payment of $1.15 a barrel with first oil planned for early 2013.

Copyright (c) 2012 Dow Jones & Company, Inc.

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L. Thomas | Jan. 25, 2012
If Iraq really does get the West Qurna field producing at 1.8 million bpd, this would seem to push it all the way up to be the 2nd or 3rd biggest producing oil field in the entire world. It seems that Saudi Arabias Ghawar field must remain as the #1 field in the world, still producing at the incredible rate of nearly 5.0 million bpd. At one time Russias Samotlor field in western Siberia was #2 at 3.2 million bpd, but I believe that its producing at less than half that rate these days. Mexicos Canterell field in the GoM was up to 2.2 million bpd around 2004, but has now slipped to less than 1.0 million bpd. Kuwaits Burgan field has produced at around 2.0 million bpd for some time. If still at that level, Burgan may now be the #2 oil field in the world.


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