UK based oil & gas facilities service provider, Petrofac has received a $240m contract from Shell Iraq Petroleum Development to develop facilities in the Majnoon field, Southern Iraq.

Petrofac will provide engineering, procurement, fabrication and construction management services for the development of a new early production system comprising two trains each with capacity for 50,000 barrels of oil per day, along with upgrading of existing brownfield facilities.

Petrofac group chief executive Ayman Asfar said Petrofac will collaborate with Shell to unlock the potential of Majnoon field, which is one of largest developments in Iraq.

"Iraq’s geographic location, adjacent to many of our existing areas of operation, made it a natural market for the group as we continue to broaden our geographic footprint." Asfar said.

Work on the project began last year and is scheduled to be complete during the fourth quarter of 2012.