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$3 Billion Iraq Plans Oilfield Contract Award to Hyundai, Samsung & Daewoo

Iraq plans to award contracts to Hyundai Heavy Industries' Engineering and Construction DivisionSamsung Engineering, and Daewoo Engineering & Construction for works on Zubair, one of its largest oil fields, Oil Minister Abdul Kareem al-Luaibi said.

"We are in the last stages in attributing the project entirely to three Korean companies," Luaibi said at the signing ceremony for a memorandum of understanding on energy cooperation with South Korean Energy Minister Yoon Sang Jick in Seoul today. "This matter will be completed in less than two weeks."

The Zubair project will cost more than $3 billion, he said, without indicating whether it was the sum that the three companies would get, or how much each would receive.

Hyundai Heavy Industries' Engineering and Construction Division and Samsung Engineering have each submitted bids for the Zubair project, according to officials at the companies. A Daewoo Engineering spokesman declined to comment other than to say the company hopes to win more orders in Iraq later this year, according to an e-mailed response to questions.

Eni Spa is leading the group that won the tender to develop the oil field, located near the southern city of Basrah, with the participation of Occidental Petroleum Corp  Korea Gas Corp. and Missan Oil. Eni said in July it's targeting a plateau production of 850,000 barrels a day for Zubair.

Bloomberg Business Week

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