Piling Tech, a subsidiary of the UAE-based business conglomerate Tech Group, said that it has won its first oil sector contract in Iraq, valued at $10 million.
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.
Tech Group chief executive officer Ali Ghaleb Jaber (pictured) commented:
“The West Qurna-2 deal is a milestone development for Piling Tech on two counts: First, 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.”
Piling Tech set up its office in Iraq in 2009 and has been involved in a host of redevelopment projects across the country including piling works for the Sports City, bridges, water desalination plants and buildings in Basra and Baghdad, Al Khaleej Times reports.
“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.”
He said the increasing volumes of business for Piling Tech in Iraq was a direct reflection of the company’s reputation in the region as a leader and specialist in piling and foundation works with modern technology at its disposal and ability to complete works on schedule in a timely and cost-efficient manner.
“Thanks to the technical expertise of our companies and credentials of the group as a leader in the construction sector, we have always maintained a steady growth in winning contracts across the UAE as well as the region despite the economic fluctuations. Our growing presence in Iraq is a testimony to our strategic approach to business expansion to chase opportunities with full awareness of risk and rewards,” the chief executive added.
Elaborating on the oilfield contract, Piling Tech general manager Dr Abdul Khalik M. Sultan 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.
“Along with the clusters we will work on in West Qurna-2, we have also been awarded part of Cluster 10 as additional work. These clusters we have been awarded is part of Phase I of the project which has just begun and Phase II contracts are expected to be awarded by the end of 2012, and we do anticipate our volume of business to increase further as this happens,” Dr Sultan said.
West Qurna-2 is a green field under development and once the wells are commissioned is expected to pump 1.8 million barrels per day.
“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. Our aim is to grow and reinforce the reputation as Piling Tech as a trustworthy partner in the lucrative oil and gas sector of the country,” Dr Sultan said.
(Source: Al Khaleej Times)