Eni awards $359m pipeline contract at Zubair

SICIM and Drake & Scull awarded key project in south Iraq

Italy's SICIM and Dubai-based contractor Drake & Scull will work on pipelines at the Zubair field. GETTY IMAGES
Italy's SICIM and Dubai-based contractor Drake & Scull will work on pipelines at the Zubair field. GETTY IMAGES

Updated 20/09/12 following release by Drake & Scull

Eni, the operator of the Zubair field in south Iraq, has awarded a $359 million pipeline deal at the field to a joint venture between Italy’s SICIM and Dubai-based contractor Drake & Scull International, according to a Dow Jones report.

Iraqi government spokesman Ali Al Dabbagh confirmed the award, but not the scope of work, to Dow Jones in a statement.

According to the state South Oil Company, Zubair pumped oil at an average rate of 270,000 bpd in August, having produced at a rate of just under 200,000 bpd before Eni began developing the field.

Drake and Scull International says that its share in the project is worth $180 million and the scope of work is EPC services for oil and water flow lines, water trunklines, oil transfer pipelines, and connections to wellheads and degassing stations.

The project is DSI's first project in Iraq and its first major oil & gas contract in the region, a major breakthrough for the company after a long period of bsuiness development.

Oilfield services firm Weatherford was been contracted in June to install six power stations at the field for $843 million. Baker Hughes is drilling at the field under a $640 million contract sealed last December. Expro has won contracts for chemical analysis laboratory work and production testing at the field.

In 2010 Eni with consortium partners contracted to boost Zubair’s production to 1.2 million barrels a day by 2016 and maintain production at that level for seven years as part of a 20-year deal.
 

 

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