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Weir announces US$98m (£59m) contract for provision of maintenance services in Iraq

24/1/2014

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The Weir Group PLC (“Weir”) announces it has signed a contract with LUKOIL Oil Company (LUKOIL) to provide general maintenance services for the West Qurna-2 oilfield in Southern Iraq. The agreement, which is for two years and is estimated to be worth a total ofUS$98m (£59m1), will see Weir engineers deliver mechanical, electrical, maintenance and pipeline services for the related production facilities, including the Mishrif Central Processing Plant.                          

Weir has invested over US$8m in establishing its service centre in Basra, Iraq and it is the first in-country location to offer fully comprehensive maintenance services for all kinds of rotating equipment, valves and wellheads.  The facility is also the first in Iraq to obtain API and ISO licences. 

West Qurna-2 is one of the largest undeveloped oilfields in the world.  Mishrif will initially produce 150,000 barrels of oil per day (bod), increasing to 400,000 bod by the end of 2014.  The processing facility is expected to be operational in the first half of 2014, at which time Weir will commence work under the terms of the contract.  Weir will recognise input on a monthly basis over the course of the contract in accordance with the agreed work plan. 

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 and be a partner of choice to our worldwide customers.”    

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