Petrofac Emirates wins $3.98bn Turkmenistan deal
JV among companies awarded $9.7bn of contracts to develop gas field
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Petrofac Emirates, an Abu Dhabi-based joint venture between the state-owned Mubadala and Petrofac, is among the companies who have been awarded US$9.7 billion worth of development contracts for Turkmenistan’s largest natural gas deposit.
Reuters has reported that the company will be joined by CNPC of China as well as South Korea's LG International Corp and Hyundai Engineering Co in developing the South Iolotan deposit, which is expected to yield around 30 billion cubic metres of natural gas per annum when work is full completed.
The scope of work at South Iolotan, which is believed to hold between 4 trillion and 14 trillion cubic metres of gas, includes drilling and the construction of gas processing facilities.
“Petrofac Emirates won $3.98 billion worth of contracts,” a source told Reuters without giving exact details.
"CNPC is obliged to produce up to 10 billion cubic metres (bcm) of gas a year and will get 3.13 bcm for itself," the source added.
The two South Korean companies, LG International and Hyundai Engineering, have won work worth $1.48 billion
Turkmenistan has the world’s fourth largest deposits of natural gas and has been working towards increasing the number of customers for its gas. In the past Russia has been the traditional consumer of Turkmen gas.
China has seen Turkmenistan as a potential supplier of gas for some time and recently completed a 1,833 km pipeline network connecting the two countries.