Iraq OKs $468.5 Million Saipem Deal To Build Oil Export Unit-Spokesman
September 14 2011 - 9:33AM
Dow Jones News
The Iraqi cabinet has approved a contract with Italy's Saipem
SpA (SPM.MI) worth $468.5 million to build an oil measuring and
control platform at the country's major export terminals in Basra,
a government spokesman said Wednesday.
"The cabinet has approved a draft contract with Saipem to
develop southern export facilities," Ali Al Dabbargh said in a
statement.
In August a person at the state-run South Oil Co. told Dow Jones
Newswires that Saipem was chosen ahead of Leighton Offshore Private
Ltd., part of Leighton Holdings Ltd. (LEI.AU), National Petroleum
Construction Co. and J. Ray McDermott, part of McDermott
International Inc. (MDR).
Saipem should complete the engineering, procurement and
construction, or EPC, of the project within 22 months, the person
at SOC said.
Leighton last year signed a contract worth $733 million to build
three single point mooring buoys and two sub-sea pipelines.
Leighton was also chosen to build a fourth SPM and a third sub-sea
pipeline costing around $500 million in the Gulf, which will be
financed by a Japanese loan. These four SMPs would add around 3.5
million barrels a day of export capacity above the existing 1.8
million barrels a day.
The whole project is part of Iraq's efforts to ease bottlenecks
at its export terminals at a time when Baghdad signed mega-deals
with international oil companies with the aim of quadrupling its
crude oil output, which currently stands at 2.7 million barrels a
day.
-By Hassan Hafidh, Dow Jones Newswires; +962 799 831 831;
hassan.hafidh@dowjones.com
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