Daewoo Wins $709m Gas Contract

By John Lee.

Daewoo Engineering and Construction has won a $709-million contract to upgrade the Akkas gas field in Anbar province, near the Syrian border, the Iraqi cabinet secretary announced.

The South Korean company will provide engineering, procurement, construction and commissioning of a central processing facility in the field.

Construction of the new facility is planned to take 46-and-half months from start to completion.

Along with Kazakhstan’s KazMunaiGas, KOGAS won the rights to develop the Akkas field during Iraq’s third energy bidding round in October 2010, but KazMunaiGas pulled out of the deal months later, forcing KOGAS to double its share in the project.

The contract stipulates a production plateau of 400,000 Mcf/day for a remuneration fee of $5.50/barrel of oil equivalent, with the plateau output to be maintained for 13 years.

(Sources: Dow Jones, Reuters)