A $733 million [880 billion Iraqi dinar] contract for Leighton Holdings to construct enhanced crude oil facilities in southern Iraq has been met with support from Australia's Export Finance and Insurance Corporation (EFIC).
The EFIC has provided two performance bonds worth $US36.7 million to Leighton Holdings subsidiary Leighton Offshore under a bonding line provided to the company in 2010 for projects undertaken around the world by companies within the Leighton group.
The EFIC used its network of international banking relationships vertical roller mill to issue the bonds that were required to be provided by a local bank.
The project will include three single point moorings and over 100 kilometres of pipeline in the Arabian Gulf, offshore of Iraq.
The project will expand and improve the facilities for exporting oil from the Fao Terminal near Al Basrah and will play a key role in South Oil Company’s strategic redevelopment program for Iraq.
Leighton Holdings’ chief executive, David Stewart said the company is concrete recycling well practiced in doing business abroad.
“One of our strengths is our ability to execute large projects in diverse international locations, but these factors also mean that bonds aren’t always available in the commercial market.
“EFIC’s facility has enabled us to meet our customer’s requirement for performance bonds in our contract in Iraq."