Iraqi Oil Exports To Triple: Smit Lamnalco Secures Major O&M Contract
Smit Lamnalco has secured the turnkey contract to support Single Point Mooring operations for The Iraq Crude Oil Export Expansion Project (ICOEEP). The scheme, 20 km off the Al Fao Peninsula, looks to triple oil exports from Iraq.
The SPM contract covers operations and maintenance of four SPM systems and runs for up to three years, a term that would generate over US$200 million for Smit Lamnalco. The agreement involves the full scope of maritime support services for the export facilities. It follows hard on the heels of an over-arching support and maintenance agreement reached between Iraq’s South Oil Company and oil and gas service provider Petrofac in August. Smit Lamnalco will be responsible for the majority of the work scope and will purchase seven new vessels to support the contract.
“This is one of the largest ever SPM operations and maintenance contracts in annualised terms,” said Daan Koornneef, Smit Lamnalco Chief Executive. “It is also one of our most complex SPM projects to date due to its short start-up phase, regional logistics and the operational complexity involved in delivering the full package of integrated maritime services.
“The scale of the contract bears testament to customer confidence in our enhanced capabilities following the merger of Smit’s terminal handling activities with Lamnalco in July 2011. It is a major step towards our goal of becoming the leading supplier of cost effective marine support services in the world.”
Smit Lamnalco owns, operates and crews one of the most modern marine and offshore support fleets in the industry. To meet the ICOEEP requirements, the company will mobilise up to 14 vessels ranging from high powered berthing tugs, maintenance vessels and mooring boats, to an accommodation barge and a patrol vessel. As part of its commitment, Smit Lamnalco has contracted two newbuild tugs from Damen, with delivery due one apiece in October and November 2012.
“We provide expertise which is local and regional, and combine that with strict adherence to international standards and Smit Lamnalco’s global reach,” said Vivek Seth, Smit Lamnalco Managing Director, Middle East and Indian subcontinent. “Asset deployment will be backed up by extensive Masters, Officers and crew training in operational procedures and safe vessel loading. We will provide diving capabilities as part of the package to support the uninterrupted loading of tankers. Furthermore, a dedicated team of onshore management will oversee supporting logistics arrangements.”
In total, close to 200 Smit Lamnalco employees will be deployed to service the ICOEEP.
Sources: Smit Lamnalco; SeaNews Turkey