The Koreans may have lost out on the oil field contract in Kurdistan but Samsung has just scored a large contract to develop an oil field in the country’s south:
Iraq signed a $1 billion oilfield service contract with South Korea’s Samsung Engineering for its West Qurna Phase Two oil field.
The deal is part of an initial development plan approved by Iraq’s oil ministry in 2010 to start production of the untapped oilfield in the south.
“The project includes building a complete establishment on the ground to produce oil of around 500,000 barrels per day,” said Iraq Oil Minister Abdul Kareem Luaibi.
“We consider this the first phase of the (total) project, which includes producing 1.8 million bpd.”
Five companies, including Saipem, SNC Lavalin Group Inc, Punj Lloyd Ltd, Globalstroy Engineering and Samsung, were short-listed last year to compete for the contract.
Tenders announced were for construction of an oil export pipeline, a tank farm at Tuba, a power distribution station and an associated gas processing plant, and also an oil gathering system, central processing facilities and a water supply system.
Russia’s LUKOIL and Norway’s Statoil sealed a 20-year deal to develop the virgin field in an auction in December 2009, pledging to boost output to a plateau target of 1.8 million bpd in six years. [Arab News]
Notice that no American companies even put in a bid for the contract. I bet this is because the US government did not want it to appear that the Iraq War was for oil. It seems the Russians, Norwegians, and Koreans scored big on this though.