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Project Summary
Project Name: Lukoil’s West Qurna-2 Oilfield Development Project (Mishrif Full Field Development)
Facility Type: Oil Field Development
Client: Lukoil
Budget (US $): 2,800,000,000
Project Initiation: Dec 07, 2009
Project Completion:: Dec 13, 2021
Location: West Qurna-2 Oilfield
Project Current Status

Lukoil has awarded EPC contract worth $619 million to SICIM of Italy for a gas processing project at the West Qurna (Phase-2) Oilfield Development. The contract scope includes a nitrogen unit and gas compression and drying facilities at the West Qurna 2 field. The project is to be completed within 990 days. (December 2023)
Project History
  • Iraqi cabinet has approved a 28-month contract worth $526.6 million to Zhongman Petroleum and Natural Gas of China for the West Qurna 2 oilfield works to drill oil wells. Under the contract, Zhongman will drill 66 production oil wells at West Qurna 2, operated by Lukoil of Russia. Current production capacity at West Qurna 2 is over 400,000 bpd but actual output is less than 350,000 bpd. (July 2015)
  • Lukoil Mid-East Limited has issued tenders for the provision of Master Engineering Services for Mishrif FFD project. Last date for submission of bids is 17 September, 2015. (August 2015)
  • Lukoil Mid-East Limited has invited bids by 30 September, 2015 for the EPC of the Dammam Decentralized Water Supply Well Pads for the West Qurna 2 Field Project in Iraq. (August 2015)
  • Lukoil Mid-East Limited has invited bids by 28 October, 2015 for the civil/structural and piping construction works for Dammam Water Injection System & Oil Wells Hook-Ups for the West Qurna 2 Field Project in Iraq. (October 2015)
  • Lukoil Mid-East Limited has issued invited firms to submit bids by16 August, 2016 for the provision of Road and Off-Plot Infrastructure Maintenance & Modification Services at the West Qurna 2 Oilfield Project in Iraq. (July 2016)
  • Lukoil and Basra Oil Company (BOC) signed off a new development plan for the phase II development of West Qurna-2 field. According to the plan, oil production of 480,000 barrels a day (b/d) will be reached in 2020 and 800,000 b/d is expected in 2025. (May 2018)
  • Lukoil of Russia has tendered two EPC packages as part of the West Qurna-2 oilfield site development-phase I. The packages are – Decentralised Water Injection Facilities, and Gas Turbine Power Plant Expansion. Last date to submit bids for both the packages is 23 August, 2018. (July 2018)
  • SICIM has been awarded the EPC contract for the well pads expansion and to connect the existing wells to the second phase development project. Flenco, Artnivo, and Bonatti International were also involved in the project. (September 2018)
  • The drilling work for the oil production wells associated with the second phase development has been commenced. (February 2019)
  • LUKOIL Mid-East has awarded a framework agreement for project support services to SNC-Lavalin of Canada for the West Qurna-2 oilfield development. The contract scope will include the provision of engineering, design activities and project support services for the development of the Mishrif and Yamama formations of the West Qurna 2 oil field, as well as training and continued professional development for local Iraqi professionals. (September 2019)
  • A $170mn contract has been awarded to construct well pads 4 and 9 at Iraq's West Qurna-2 oil field development to SICIM of Italy. (October 2019)
  • LUKOIL Mid-East has received bids from three companies for the EPC contract worth $190mn for its planned water intake and water treatment plant at Iraq's West Qurna-2 oil field development project. Two out of three companies who are competing for the contract include: China Petroleum Engineering & Construction Company, Petrofac of UK. (October 2019)
  • Workers have been deployed on Iraq’s $121mn West Qurna 1 Oil Field Development Degasification Station 7 (DS-7) Tie-in project. The contract was awarded by US ENERGY ExxonMobil to CPECC. (December 2019)
  • Work on a $121mn tie-in project related to the West Qurna 1 oil field degasification station 7 (DS-7) in Iraq had been put on hold due to Covid-19. (July 2020)
  • Lukoil has invited bids for the EPC for gas sweetening unit modification, nitrogen package and raw gas compression & dehydration facilities at the West Qurna (Phase 2) Oilfield Development Project. Last date to submit bids is 21 June, 2021. (May 2021)
Project Contract Awards - Feed
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
Project Contract Awards - PMC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • Worley Parsons
  • Worley Parsons
  • Worley Parsons
Project Contract Awards - EPC
Contractor Prequalified Contractor Bids Submitted Contractor Awarded | Contract Value
  • SICIM of Italy
  • SICIM of Italy
  • SICIM of Italy(Well pads expansion, Gas processing project ($619 million))
Related Projects
No Related Projects
Project Schedule

December 2009: Project Initiation of Phase I

March 2014: Commissioning of Phase I

May 2018: Project Initiation of Phase II

September 2019: FEED contract awarded

May 2021: ITB for EPC of Gas Sweetening Unit

December 2023: Contract Awarded for EPC of gas processing project 
Project Scope

The project scope involves development of the West Qurna-2 oilfield (covering an area of 340km²), located in the southern part of Iraq, 65 kilometers north-west of Basra, a major seaport city, and is one of the world's largest fields. The field's initial recoverable reserves come to around 14 billion barrels. More than 90% of the reserves are concentrated in Mishrif and Yamama accumulations.

 

The onshore project is being developed in two phases. The construction on the first phase of West Qurna-2 project was commenced in April 2012 and was commissioned in March 2014. As of April 2019, total production from the first phase of the project was 100 million tonnes of oil.

 

The second phase, scheduled to begin production by 2020, is expected to increase the project’s production capacity from the current 400,000 barrels oil per day (bpd) to 480,000 bpd. The client aims to achieve a total production capacity of 800,000 bpd at the field by 2025.

 

Lukoil hired Australia’s WorleyParsons as the project management consultant (PMC) for the second phase expansion.

 

 

The required surface facilities for Yamama and Mishrif include major elements such as well pads, oil gathering flowlines, headers and trunklines, a central processing facility and its associated utilities and offsites, oil/gas/liquid petroleum gas export pipelines, additional storage tanks at an existing facility, power plant, water intake and supply pipelines.

 

Field development details

 

The first phase development of the West Qurna-2 field included the installation of a central oil processing facility (CPF) with a capacity of 400,000bpd. The CPF produces oil from 48 development wells associated with five well pads.

 

The field infrastructure includes oil storage tanks with a total capacity of 198,000m³ at the Tuba Tank Farm, located 60km away from the Basra City. Other auxiliary infrastructure include a 126MW gas turbine power, 33kV/132kV gas-insulated switchgear, water treatment facility, fuel gas extraction system, drainage systems, a field camp, additional flow lines, and access roads.

 

The second phase of the project will involve the drilling of 54 new production wells in the Mishrif formation and three wells in the Yamama formation along with associated oil processing facilities.

 

Under the development plan agreed between Lukoil and Iraq’s oil ministry, the project's final target is to increase production by 350,000 bpd, so the project could eventually almost double output, a statement from the state-run Basra Oil Co. said, without giving a timeline.
Project Structure:
The project is owned and operated by Lukoil (75%) and North Oil Company (NOC, 25%), the state-owned company of Iraq. North Oil Company (NOC), a state-owned company being a part of the Iraqi Oil Ministry. NOC is involved in the project under the contractual terms as one of the project contractors. NOC does not incur any costs receiving only its share (25%) in the remuneration. South Oil Company (SOC) represents the Iraqi Republic in the project and distributes the project oil.
Lukoil Mid-East LimitedProjects
Address:

LUKOIL International Services B.V. (Dubai branch)

TECOM,

P.O. Box 500551,

Dubai, United Arab Emirates
Phone: + (971) 4448-75-75
Email: tender@lukoil-international.com, Azat.Dilmukhametov@lukoil-international.com, Sergei.Sipunov@lukoil-international.com, Anton.Kalikov@lukoil-international.com
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