EXCLUSIVE: BP extends UK firm’s services contract in Iraq

09 October 2018
Firm has been awarded a four year contract renewal for providing maintenance management services

Energy major BP has awarded UK oil and gas contractor Petrofac a $50m-worth contract renewal for provision of maintenance management services in Iraq.

Petrofac in May 2014 won a project management consultancy (PMC) services contract, worth $535.8m from BP, state-owned China National Petroleum Corporation (CNPC) and the Basra Oil Company (formerly South Oil Company), the joint operators of the Rumaila oil field in southern Iraq.

Petrofac’s Engineering & Production Services East unit will continue working on the contract for another four years as part of the renewal, it said in a statement.

Current production at Rumaila stands at between 1.4 and 1.5 million barrels a day (b/d), although BP believes there is room to ramp up production.

The operating partners have set an output target of 2.1 million b/d in 2020.

The scope of work for the extended contract calls on Petrofac to provide specialist personnel to support maintenance services for existing mature assets and new production enhancement facilities.

In August, Petrofac won a contract worth about $370m by Iraq’s state-owned Basra Oil Company (BOC) for the expansion of the Central Processing Facility (CPF) in the Majnoon oil field, located in the south of the country.

In June, the contractor announced winning $110m worth of additional work in Iraq in the form of new orders and contract extensions.

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