Shell Awards Wood Group-CCC Majnoon Oil Field Contract

Anglo-Dutch oil company Royal Dutch Shell PLC has awarded Wood Group PSN and Consolidated Contractors Company, or CCC, a commissioning services contract, Wood Group said in a statement Tuesday.

The contract is to commission the first phase of the super giant Majnoon oil field in southern Iraq, it said without giving the value of the contract.

Wood Group-CCC, or WGCCC, will be responsible for the provision of skilled resources, tools, services and test equipment to assist the start-up, commissioning and testing of the new production facilities at the field.

Iraq's Oil Minister Abdul Kareem Luaiby said recently that Shell and its partners, Malaysia's Petronas Gas Bhd and the Iraqi state company will start production this month of 100,000 barrels a day from the field, believed to hold as much as 12.6 billion barrels of proven oil reserves.

The one-year contract will commence in June this year and see WGCCC employ about 200 personnel to service the contract, the statement said.

The new production facilities at the field include well site facilities, a central production facility and all new-build facilities and utilities required to operate the field, including pipelines and infrastructure.

Shell and Petronas were awarded the deal in December 2009 to develop the field located in southern Iraq near the Iranian borders and near Basra. Shell owns 45% of the venture and Petronas owns 30%, with the Iraq state-run company holding 25%.

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

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