Following the reports earlier in the week that Petrofac has won a major contract in Iraq, the company has issued the following statement to the markets this morning:
Petrofac, the international oil & gas service provider, has been awarded a US$330 million lump-sum engineering, procurement and construction (EPC) contract by Gazprom Neft Badra B.V. ('Gazprom') for the first phase of the Badra Oilfield Development Project in Iraq. The competitively tendered project will commence shortly and be completed in three 18-month phases, with final completion scheduled during the second half of 2015.
Under the terms of the contract, Petrofac will provide detailed design, engineering, procurement, construction, pre-commissioning, commissioning and start-up work on the Badra development's central processing facility, which comprises three crude oil processing trains. The first phase of the project is expected to come on stream in the second half of 2013.
Marwan Chedid, chief executive of Petrofac's Engineering, Construction, Operations & Maintenance (ECOM) division, commented:
"We are delighted to be working with Gazprom on this important development which holds significant future potential for the progression of Iraq's oil & gas industry. This is Petrofac's third notable project award in Iraq and also marks our first lump-sum EPC project in the country.
"Iraq represents a sizeable market opportunity for Petrofac and our Basra office is continuing to expand as we develop our presence in the country. In the meantime, our teams are looking forward to delivering a successful outcome on the Badra project in line with our commitment to safety, quality, integrity and corporate social responsibility."