Lukoil has awarded Piling Tech, a unit of UAE-based Tech Group, its first oil contract in Iraq valued at US$10mn.
Under the terms of the agreement, Piling Tech will be involved in the installation of piles, foundations and wells for the West Qurna-2 oil field in southern Iraq.
Lukoil along with Norway's Statoil and Iraq's state-owned South Oil Company is prospecting for oil in West Qurna - 2 after its won the contract in Iraq's second licensing round in December 2009.
A milestone development
Tech Group CEO Ali Ghaleb Jaber said: "The West Qurna-2 deal is a milestone development for Piling Tech on two counts. One - it is our first foray into the oil and gas sector of Iraq, and second the deal signifies Piling Tech's growing business footprints across various redevelopment projects in Iraq."
A stepping stone
"We look at the Lukoil contract as a stepping stone into oilfield development sector in Iraq as Piling Tech is expecting to conclude more deals which are in the active pipeline," Jaber said, adding that "the volume of work with Lukoil is also expected to increase further as more contracts are awarded in West Qurna-2 oilfield," added Jaber.
Abdul Khalik Sultan, General Manager, Piling Tech, said that the current contract with Lukoil for five well clusters from 2 to 8 was a beginning and is the first phase of the project.
"We do intend to participate in more projects in West Qurna-2 and firm up our role in the oil and gas sector in Iraq," Sultan said.
