International engineering, procurement and construction (EPC) firms have submitted their commercial proposals for an estimated $2bn deal to build new crude oil storage facilities in the south of Iraq.

Priced bids were submitted to the Oil Ministry in Baghdad on 1 October by seven firms, following a technical bid round in July, according to sources close to the project.

No prices have yet been revealed, but bidding contractors expect a low bidder to emerge before mid-October.

Bidding firms include:

• China Petroleum Pipeline Bureau (China)
• Daewoo Engineering (South Korea)
• Entrepose (France)
• Punj Lloyd (India)
• Saipem (Italy)
• Toyo Engineering (Japan)

The project covers the construction of 29 storage tanks, each with a capacity of 66,000 cubic metres. Seven of these will be located at the Nasiriya oil depot and 22 at the Bin Umar oil depot.