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Enka wins US$60mn Majnoon facility deal in Iraq

Exploration & Production

Royal Dutch Shell and Petronas have awarded a contract worth more than US$60mn to Turkish firm Enka to install and operate two production facilities at the Majnoon oilfield.

The Turkish company will also install two crude storage tanks and four pumping units which will connect a pipeline network at three well-pads, and Iraqi official was quoted as saying by Reuters. Shell and Petronas still had to set a date to sign the contract with Enka.

"Under the deal, Turkey's Enka will install two production facilities with a capacity for processing 100,000 bpd of crude to be produced from the supergiant Majnoon oilfield," the official said.

"Output is expected to hit 175,000 bpd in 2012 and that requires installing new crude facilities and further preparing well-pads to drill new oil wells," the official added.

Four companies had tendered for the deal, including Italy's Saipem and India's Punj Lloyd Ltd. Majnoon is one of the world's largest oilfields and the eventual output target for the field is 1.8mn bpd

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