Iraq, Samsung Engg ink $1bn oil deal

Baghdad, March 22, 2012

Iraq signed a $1 billion oilfield service contract with South Korea's Samsung Engineering on Thursday for its West Qurna Phase Two oilfield,  a report said.

The super-giant West Qurna oil field in southern Iraq is located in Basra Governorate, around 65 km morth west of the city of Basra. The field comprises two separate licence areas, Phase 1 and Phase 2, defined by the Euphrates River, which runs west to east across the centre of the field. 

In December 2009, Russia's Lukoil and Norway's Statoil were awarded the rights to develop the 12.88-billion-barrel West Qurna Phase II oil field. In March 2012, Statoil sold its 18.75 per cent state in the field to Lukoil, giving the Russian firm a 75 per cent stake, and leaving the Iraqi state oil company with 25 per cent.

Meanwhile, Iraq's state North Oil Co said it expects production from its northern oilfields to be at 900,000 to one million barrels per day within three to four years. Current output from the fields was at 580,000-600,000 bpd.- Reuters

Tags: Oil | Iraq | Crude | West Qurna |