Weir Group lands $98m Iraqi oilfield service deal
ENGINEERING group Weir has secured a $98 million (£59m) deal to provide maintenance services for one of the world’s largest untapped oilfields.
The two-year deal, awarded by Russian oil giant Lukoil, will see the Glasgow-based firm’s engineers deliver mechanical, electrical, maintenance and pipeline services at the West Qurna-2 field in southern Iraq.
Lukoil estimates the field, which was discovered in 1973 and lies 40 miles north-west of Basra, contains recoverable reserves of about 13 billion barrels.
Production from the site’s Mishrif processing plant is due to begin within the next six months, with output expected to rise from 150,000 barrels a day to 400,000 barrels by the end of the year.
Weir chief executive Keith Cochrane said: “This substantial contract demonstrates the importance of Weir’s long experience of working in Iraq and our reputation for delivering high quality engineering services in support of the country’s developing oilfield infrastructure.
“It also reflects our global capability, a key strength of our group which allows us to capture opportunities in high-growth markets.”
Weir warned in November that its annual profits, due to be unveiled towards the end of next month, will miss City forecasts after weak metal prices hit investment in the mining sector.