UK-based oil and gas services provider Petrofac has won a contract worth over $240 million (£149 million) from Shell Iraq to develop facilities in the Majnoon Field.
Under the terms of the contract, Petrofac is providing engineering, procurement, fabrication and construction management services for the development of a new early production system, consisting of two trains each with capacity for 50,000 barrels of oil per day, as well as the upgrading of existing brownfield facilities.
Work on the project is expected to be completed during the fourth quarter of 2012.
Commenting, Ayman Asfari, Petrofac’s CEO, said: “Majnoon is one of Iraq’s largest developments and we are delighted to be working with Shell to assist them with unlocking the field’s potential. Iraq’s geographic location, adjacent to many of our existing areas of operation, made it a natural market for the group as we continue to broaden our geographic footprint.”
Subramanian Sarma, managing director of Petrofac Engineering & Construction, added: “Prior to beginning work with Shell in Iraq last year, we had spent many months preparing in order to achieve a sufficient level of readiness across several aspects of our business operations.
“All of our activities are underpinned by our strong commitment to safety, quality and integrity and alongside Shell and the local community, we are working to deliver this project to the standards our customers and stakeholders expect from us.”
Majnoon, which lies in southern Iraq, is one of the world's largest oil fields. Operator Shell holds a 45 per cent share, with partner Petronas holding 30 per cent. Iraq’s government holds 25 per cent.
