Petrofac extends Iraq oil contract with $160m award
Iraq's Basra Oil Company has extended its O&M contract with Petrofac for a period of two years, it was revealed
Petrofac announced it has been awarded an extension on its contract with Basra Oil Company (BOC).
The latest award for Petrofac's engineering and production services (EPS) division comes close on the heels of an $800m (OMR308m) deal that the company was awarded by BP for the Khazzan Phase 2 (Ghazeer) gas development in Oman.
Worth $160m, Petrofac's contract with BOC – previously known as South Oil Company – relates to the Iraq Crude Oil Export Expansion Project (ICOEEP).
The two-year extension will see Petrofac continue to function as the project's operations and maintenance (O&M) service provider, a role it has held for five years.
ICOEEP, "responsible for a significant proportion of Iraq's oil export", according to Petrofac, is located 60km offshore the Al Fao Peninsula in the south of the country.
It comprises a central metering and manifold platform and four single point moorings that facilitate oil export onto awaiting crude carrier tankers.
Additionally, Petrofac is responsible for 300km of sub-sea pipelines,1800m of sub-sea hose infrastructure, and a marine spread comprising 14 vessels as part of its contract.
Commenting on the contract, Mani Rajapathy, managing director of Petrofac EPS East, said: "We are delighted to continue with our role in support of this key crude export facility.
"Since the start of our involvement in 2012, we have exported more than 2.2 billion barrels of oil while retaining an impeccable safety record."
Earlier this week, Petrofac announced it had been awarded a lump-sum contract for the Phase 2 central processing facility (CPF) that BP is building at Ghazeer.
The deal follows the contract, worth $1.4bn (OMR539m), of Phase 1 CPF Khazzan, awarded to Petrofac in February 2014.
The project comprises the addition of a third gas train with a capacity for nominally handling 500 million standard cubic feet of gas per day (mmscfd), which will help drive increased total production capacity from the CPF to 1,500mmscfd.
The engineering, procurement, construction, and commissioning (EPCC) scope of work also includes liquid and compression trains and associated infrastructure, as well as brownfield work associated with connecting the Phase 1 and 2 facilities.