Tag Archive | "Leighton"

Unaoil joins Leighton in Denying Iraq Allegations

By John Lee.

The Australian reports that the company at the centre of the Leighton Holdings bribery allegations has denied any involvement in corruption in Iraq, or having links to the Oil Minister and Prime Minister.

Unaoil, which is based in Monaco, was alleged to have been paid kickbacks by Leighton to secure an oil pipeline contract from the Iraqi government. According to Fairfax Media, Unaoil, which is run by an Iranian family, had close ties to Oil Minister Shahristani and Prime Minister al-Maliki.

But in a statement the company said:

“Unaoil takes great offence from, and categorically denies, any allegations that we engaged in improper conduct in relation to our work with Leighton on the ICOEEP (Iraq Crude Oil Export Expansion Project).

It added that it had been cleared of any wrongdoing following an external investigation.

(Source: The Australian)

Posted in Construction & Engineering, SecurityComments Off

Leighton Shares Dive on Iraq Corruption Allegations

By John Lee.

Shares in the Australia’s Leighton Holdings, Australia’s biggest builder, fell more than 10 percent on Thursday following reports that former executives knew of alleged corruption at the company in Iraq.

Leighton allegedly paid bribes to win contracts, and former chief executive officers Wal King and David Stewart were aware of the conduct, according to a report that follows a six-month investigation by the Fairfax Press.

A handwritten note from November 2010 allegedly shows that Mr King approved $42 million in kickbacks to “a firm in Monaco nominated by Iraqi officials” for a $750 million oil pipeline contract.

In July of last year, the company sacked a senior manager, whom it did not name, as part of its probe into allegations of bribery.

(Sources: Businessweek, ABC, Yahoo!)

Posted in Construction & Engineering, SecurityComments (2)

Reef Subsea Wins Cable Deal

Reef Subsea Dredging and Excavation (D&E) has secured a number of substantial contracts in the Middle-East and Asia Pacific as the company continues to grow its global footprint.

The Middle-East contracts will involve two teams from the company’s UK workforce managing subsea excavation work in Saudi Arabia and Iraq. The work in the Al Khafji field in Saudi Arabia, on behalf of Technip and Khafji Joint Operations (KJO), is a shore approach cable excavation in shallow waters. Specialist personnel will also be deployed for the post-lay burial of the 165mm composite cable.

The second contract is the first project for Reef Subsea in Iraqi waters working with Leighton Offshore as part of the Iraqi Crude Oil Expansion programme (ICOEEP). The work involves post lay burial of a fibre optic cable in excess of 50km in length in Iraq’s largest producing oil field.

Reef Subsea’s specialist controlled flow excavation tools, the T4000 (pictured) and Twin R2000, will be deployed for both projects, as these can work effectively on live cables and pipelines without compromising the subsea assets integrity. The company has two sets of equipment based in Abu Dhabi for operations in the UAE and surrounding areas.

Niels-Henrik Brodtkorb, Managing Director, Reef Subsea Dredging and Excavation, commented:

These substantial contract wins in the Middle East and Asia allows us to demonstrate the capabilities of our versatile subsea excavation tools.

“Our employees are highly skilled at operating these tools and bring a huge amount of experience to operations in these global industry projects.

“Increasing our presence and equipment capabilities across the world will allow us to further strengthen our reputation as a leader in subsea dredging and excavation.

(Source: Reef Subsea)

Posted in Construction & Engineering, Oil & Gas, Telecoms/CommsComments (5)

Leighton Looks to Move on from Iraq Scandal

By John Lee.

Habtoor Leighton Group (HLG) chairman, Riad Al Sadik (pictured), has said Leighton’s name “became very, very bad in Iraq” in 2012 following the bribery scandal.

HLG was definitely affected,” he told The Australian. “It took us quite some time to clean this up.

The company sacked a senior manager last year as part of its probe into allegations of bribery related to its $1.3 billion of oil contracts in Iraq.

(Source: Business Spectator, The Australian)

Posted in Construction & Engineering, SecurityComments Off

Leighton Wins $200m Iraq Contract

By John Lee.

Habtoor Leighton Group (HLG) has been awarded a sub-contract for the construction of infrastructure in Southern Iraq and is part of an engineering, procurement and construction project to deliver a central production facility.

The Australian reports that the contract is valued at more than $200 million.

HLG CEO and Managing Director Laurie Voyer (pictured) said, the project is in line with the Group’s strategy to diversify its work by type and geography and will be the first contract HLG has been awarded in Iraq.

“HLG has developed an outstanding reputation for delivering complex projects in remote locations, and we are delighted to be working on this key project,” he said.

HLG’s initial scope of works comprises the partial engineering, and construction of civil, utility, and infrastructure works, including:

  • Site offices
  • Earthworks, roads and buildings
  • Equipment installation, electrical and instrumentation
  • Oil and water storage tanks
  • Pre-commissioning

“This project provides HLG with an opportunity to demonstrate our outstanding construction capabilities and ability to deliver the project to the highest international standards,” said HLG Chairman, Riad T Sadik.

“We appreciate the importance of this project, and its successful delivery will stand HLG in good stead to secure additional oil and gas-related work – further cementing our position as one of the leading diversified international contractors in the Middle East and North Africa,” Mr Sadik said.

Works will commence immediately, with completion scheduled for early 2014.

(Sources: HLG, The Australian)

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16 Firms Bid to Build $412m Grand Faw Breakwater

By John Lee.

Sixteen companies have bid to build a 480 billion-dinar ($412 million) breakwater for Iraq’s Grand Fao [Grand Faw] port.

Omran Radhi, director general of the State Company for Iraq’s Ports, told Bloomberg that the list of bidders includes:

  • Hyundai Engineering & Construction;
  • Daewoo Engineering & Construction;
  • Dredging International;
  • China Communications Construction Company; and,
  • Al Habtoor Leighton Group.

There were also bids from Brazilian, Turkish, Italian, Ukrainian, Jordanian and Iraqi companies.

The esults will be announced after an evaluation that will take up to two months, Radhi said, adding that construction of the breakwater will be financed by the government.

The Grand Fao port will have capacity for more than 30 ships and will provide at least 100,000 jobs, Radhi said in a March 5 interview. The first phase of he project will cost $6 billion (7.2 trillion Iraqi dinars).

(Sources: Bloomberg, AKnews)

Posted in Construction & Engineering, TransportationComments Off

Leighton Executive Sacked in Probe into Iraq Bribery

By John Lee.

Australian construction group Leighton Holdings has sacked a senior manager, whom it did not name, as part of its probe into allegations of bribery related to its $1.3 billion of oil contracts in Iraq.

The company said “its internal review of the Iraq projects undertaken by its subsidiary, Leighton Offshore Pte Limited, has identified instances of failures to meet governance standards in respect of the proper documentation of contractual arrangements. As a consequence, a senior manager has been dismissed.

Leighton Holdings’ Chief Executive Officer, Hamish Tyrwhitt, said:

Leighton’s values are integral to Leighton’s approach to business. No deviation from those values will be tolerated and appropriate disciplinary action will be taken if necessary.

The internal review followed the announcement in February that the company had made a voluntary referral to the Australian Federal Police (AFP). Leighton is continuing to cooperate with the ongoing AFP investigation.

Leighton was working on the new floating Single Point Mooring (SPM) platforms in the Gulf.

Posted in Construction & Engineering, Oil & Gas, SecurityComments Off

Iraq picks Petrofac for $95m SPM Contract

Reuters reports that Petrofac has won a $95 million contract to carry out maintenance work for Iraq’s new offshore terminals and sub-sea pipelines at the Gulf.

The contract involves maintenance work to ensure there are no leakages in the pipelines or any faults at the two new single point mooring (SPM) terminals that may delay the loading of crude.

Iraq’s South Oil Company awarded the deal to Petrofac ahead of the also shortlisted Saipem of Italy and Australia’s Leighton Holdings.

“Petrofac’s offer was picked for the service contract and the one year extendable contract has been referred to the oil minister for final approval,” the oil official, who declined to be named, said.

Two of Iraq’s four new SPM terminals, built by Leighton, have already started operation and have boosted oil exports significantly.

(Source: Reuters)

Posted in Oil & GasComments Off

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