Friday, Jun 17, 2011
(Adds comment from a Majnoon venture's official paragraph 5, background.)
By Hassan Hafidh
Of DOW JONES NEWSWIRES
AMMAN (Dow Jones)--Iraq's state-owned South Oil Company and partners Royal Dutch Shell PLC (RDSA) and Malaysia's Petronas (PETR.UL) have awarded Dubai-based Dodsal Group a $106 million contract to build a pipeline connecting the supergiant Majnoon oil field with a pumping station near the southern export terminals in Basra, a senior SOC official said Friday.
Mahdi Badiaa, head of the Majnoon oil field venture's Joint Management Commission, said a draft contract has been sent to the oil ministry for approval before the final signature of the deal.
Under the contract, Dodsal Group will lay a 73-kilometer pipeline to carry crude from Majnoon to a crude oil gathering station near Zubair in southern Iraq.
A Dodsal company official contacted by telephone from Dubai refused to comment.
Separately, another company official from Majnoon's venture said that the SOC is in charge of construction of the pipeline and Majnoon venture is playing a technical advisory role.
The field is currently producing 60,000 barrels a day and expected to reach 175,000 barrels a day in 2012.
Shell and its partner Petronas were awarded the right to develop the 12.8 billion barrels Majnoon field in 2009.
-By Hassan Hafidh, Dow Jones Newswires; +962 799 831 831; hassan.hafidh@dowjones.com
(END) Dow Jones Newswires
17-06-11 1137GMT
