US-based EPC company KBR has confirmed that it has bagged an EPCM contract from Basra Oil (BOC) for the development of the Majnoon super-giant oil field in Basra province in Iraq.
Last month, the Iraqi national oil company had signed contracts, totaling $118m, with China-based Anton Oilfield Services Group (Antonoil) and KBR to operate and maintain the onshore oil field, reported Iraq Business News, citing the Iraqi Ministry of Oil.
As per the terms of its contract, KBR will be responsible for overall project management and for providing multi-discipline engineering support, procurement and construction management (EPCM) services to the Iraqi national oil company. The service contract is for a period of two years and can be extendable for an additional year.
KBR Europe, Middle East, Africa and Asia-Pacific region president Jay Ibrahim said: “KBR has a long and rich history in Iraq and we are excited to be able to leverage our broad expertise in onshore oil and gas processing facilities across the project lifecycle as a true partner to BOC,” said Jay Ibrahim, KBR President Europe, Middle East, Africa and Asia-Pacific region.
“This award highlights BOC’s confidence in KBR’s capabilities to deliver in multiple engineering discipline areas across a variety of projects.”
Located 60km from Basra in southern Iraq, Majnoon is considered to be among the world’s richest oil fields. The Iraqi onshore field is estimated to contain 38 billion barrels of oil.
The oil field was discovered way back in 1975 by the now defunct Brazilian company Braspetro. However, production at the Majnoon oil field suffered due to the Iran-Iraq War and later on due to the 2003 Iraq War.
Currently, Royal Dutch Shell is the operator of the field with a stake of 45% and is partnered by Petronas and Iraqi Ministry of Oil, with stakes of 30% and 25%, respectively. In November 2017, Shell agreed to exit Majnoon and hand over its operations to BOC by June 2018.