Iraq Approves $359m Zubair Oilfield Contract
By John Lee.
Iraqi government spokesman Ali Al Dabbagh (pictured) has said that the cabinet has approved a $358.8 million contract with Italy’s SICIM and Dubai-based Drake and Scull to lay pipelines in the southern Zubair oilfield.
The two-year extendable deal is part of a series of contracts aimed at developing Zubair which should have an output of 1.2 million bpd by 2017, reports Reuters.
The consortium will lay pipelines to transport crude from oil wells to production facilities, will lay water injection pipelines and will replace old pipelines in the field; it will also build an 18 km (12 mile) pipeline to carry crude oil exports from Zubair to a storage depot.
Italian company Eni is the lead partner on the 20-year Zubair service contract with a 32.81 percent stake; Iraq’s Missan Oil Company holds 25 percent, Occidental Petroleum Corp 23.44 percent, and South Korea’s KOGAS 18.75 percent.
(Sources: Reuters, Dow Jones)