West Qurna-2 Field, Basra Province

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West Qurna 2 field is located in the south eastern part of Iraq, approximately 65km north-west of the seaport town of Basra. The development drilling and construction of the central processing facility for the West Qurna-2 field started in April 2012. The license awarded to Lukoil for the operation of the field is valid for 20 to 25 years. The total target production from the field is 1.2 million barrels per day (bpd) and the target production maintenance period is 13 to 19.5 years. The initial contract for the development of the field was awarded to Lukoil and Statoil in January 2010. Lukoil and Statoil had respective shares of 56.25% and 18.75% at that time, while North Oil Company of Iraq held a 25% share. The shares of Statoil were transferred to Lukoil in January 2012. The total investment for the field’s development is expected to reach $25bn. LUKOIL will initiate the cost recovery and remuneration payment mechanism upon achieving a production capacity of 150,000 barrels per day. The project will become self-financed when commercial production of 1.2 million bpd of oil begins. The front end engineering design (FEED) work for the project was carried out by Technip. Project management services are being provided by Worley Parsons. The main contractors for the project are Samsung Engineering, Baker Hughes and Enka Insaat. West Qurna-2 field was discovered in 1973. It covers an area of 340km2. The estimated recoverable reserves of the field are 14 billion barrels of oil making it the second largest undeveloped field in the world. The development plan for West Qurna-2 involves the construction of 23 deviated wells. The wells are currently being drilled simultaneously on five well pads using diesel-electric rigs with a hook load / bearing capacity of 450t. Similar rigs will be used in the future on four other well pads. The rigs are capable of drilling to depths of up to 5,000m. The five drilling rigs and three workover rigs are being mounted on skids for fast and efficient rig moves. Certain wells are being drilled directionally using cluster (pad) drilling technique to target the mishrif formation. The central processing facility(CPF) is being constructed in conjunction with well pad facilities, oil gathering lines, water and power supply systems and shift camp, including other infrastructure and auxiliary facilities. Samsung Engineering is carrying out the engineering, procurement and construction (EPC) works for five well pads with 67 development wells, five gathering lines, CPF, Euphrates River water intake and water pipeline to the CPF, power supply system and field camp. The company is also providing several services and facilities for water treatment, distribution and disposal (including formation water), fuel gas extraction, instruments, drainage systems, commercial oil storage tanks and pumping facilities, administration buildings, workshops, warehouses, chemical analytical laboratory, fire station and central control room. The EPC works for a dual fuel (fuel gas and diesel oil) power plant comprising of three GE MS6001B generators rated at 42MW each, gas treatment system, power distribution systems and associated utilities will be constructed by Enka Insaat. Enka Insaat will also carry out the EPC works for the water treatment plant, control systems, electrical systems, instrumentation, a gas treatment and compression system, liquid fuel tank storage and transfer system, security systems, GIS switchyards of 132kV and 33kV, a maintenance shop, and the administration building. The 3D seismic works for the project were carried out by Terra Seis Trading (TSTL). Clyde & Co is also involved in the project. The civil design works including earthworks for well pads, piling and foundation design for rigs and installations, detailed design of intrafield road, upgrading of main axial road and culvert designs for canal crossings are being carried out by Kentz. The extension of the existing tank farm at the Tuba oil export terminal, construction of three 66,000m3 each oil storage tanks, including the installation of automation, remote control, power supply and fire fighting systems, will be carried out by Entrepose Projets / Rosco. The design, supply and driving of high quality precast piles for the project will be carried out by Al-Fayha Group. The Rumaila oil field is one of the largest oil fields in the world. It is located near Basra and about 20 miles from the Kuwaiti border in southern Iraq. Development works for the Badra oil field, situated in the Wasit Province of eastern Iraq, are currently underway, with initial production capacity of 60,000 barrels per day from the field expected in 2013. Iraq Crude Oil Export Expansion Project (ICOEEP) is a 247km-long pipeline master planned by the Iraqi Ministry of Oil (MoO).

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