Iraq has awarded a $523 million [612 billion Iraqi dinar] contract to expand oil export facilities in the south of the country to Leighton Offshore, a subsidiary of Australian firm Leighton International, according to AFP. Leighton is the Australian unit of Germany construction group Hochtief.
The project must be completed within 16 months and will be funded by a Japanese government loan, government spokesman Ali al-Dabbagh said in a statement.
Reuters reports that Leighton will build a single point mooring buoy (SPM) with an export capacity of 900,000 barrels per day and construct a 48-inch sea export pipeline to transport crude from storage depots in Iraq's southern Faw peninsula to the new floating terminal.
The contract is part of a greater expansion project involving the building of two marine pipelines and one onshore pipeline and installing four single point moorings (SPMs) for loading oil tankers at a total cost of about $1.3 billion.
Foster Wheeler AG is handling the project management consultancy services.
The announcement follows the awarding three weeks ago of a $469 million contract to expand oil export facilities in Basra to Italian firm Saipem.
(Sources: AFP, Reuters)