Samsung wins US$998mn West Qurna contract

oil-productionThe Iraqi government approved a US$998mn oil field service deal awarded to South Korea's Samsung Group by Lukoil to develop the West Qurna Phase Two oil field, according to a government statement.

Government spokesman Ali al-Dabbagh said Samsung Engineering 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 was quoted by Dow Jones as saying.

The deal is part of the initial development plan set by Lukoil and Statoil and approved by Iraq's oil ministry in 2010 to start production from the untapped oilfield.

Lukoil and Statoil were awarded a 20 year service contract for West Qurna Phase Two in Iraq's second licensing round held in December 2009.

The firms promised to boost output from the southern field to reach 1.8mn bpd with the first oil planned for early 2013.

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