Foster Wheeler wins Iraq oil export expansion deal

14 July 2010

Iraq aims to increase Basra export capacity to 4.5 million barrels a day

Iraq’s South Oil Company (SOC) has awarded a project management consultancy contract to US-based Foster Wheeler for new oil export facilities to supplement the existing Basra export terminal, the company said in a 13 July statement.

The project will include the installation of two new onshore and offshore pipelines, along with three single-point moorings, and a central manifold and metering platform. The company did not disclose the value of the project.

Scheduled for completion by July 2013, the project aims to boost Iraq’s Basra export capacity from 1.8 million barrels a day (b/d) to 4.5 million b/d by 2014.

Foster Wheeler will monitoring and administer purchase orders and contracts placed by SOC and implement the recommendations made since winning the front-end engineering and design (Feed) contract in 2009 (MEED 19:2:10).

The company will also oversee the tendering of the engineering, procurement and construction (EPC) contract for an offshore central manifold and metering platform and associated jacket. Foster Wheeler will provide subsequent administration and management of this contract.

According to the Oil Ministry, Iraq exported a total of 58.7 million barrels of crude oil in May. Iraq has only a sliver of shoreline, pinched between Iran and Kuwait. The Umm Qasr port handles more than 80 per cent of Iraq’s imports, while Basra oil terminal and Khor Alamya handle 45.1 million barrels, approximately 77 per cent of its oil exports.

A 2008 report by Foster Wheeler warned that the southern port requires a complete overhaul if Iraq’s plans to more than double the country’s overall crude output to 4.5 million b/d by 2013 are to be successful. The expansion of Basra oil terminal is currently under way with a floating terminal, which is scheduled for completion by the end of 2012.

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