ISOICO wins $200 million offshore Salman job

31 January 2003
The local Iran Shipbuilding & Offshore Industries Company (ISOICO)in partnership with the local AmidEngineering & Developmenthas been selected for the largest of three offshore packages on the Salman oil and gas field development. The estimated $200 million contract was awarded in late January by Jersey-registered Petro Iranon condition that parts of the project work be subcontracted to two local companies (MEED 20:9:02).

The engineering, procurement and construction (EPC) contract covers seven offshore platforms and two bridges. It is understood that the ISOICO team won the deal on the condition that the construction of the bridges be subcontracted to the local Saff Offshore.

The local Sadrais set to carry out the construction of the 8,500-tonne gas processing platform. Petro Iran requested that Sadra be involved because ISOICO does not have the facilities to build a platform of this size. Sadra has built a similar-sized platform, SPD-1, for the local Petroparson phase 1 of the South Pars gas development scheme. However, it is understood that Qeshm-based Naft Sazehqueshhas also expressed interest in this portion of the deal. A final decision on which company is to build the platform has yet to be made.

Two other offshore packages were awarded to local firms in 2002. Iranian Offshore Engineering & Construction Company (IOEC)and Amid in December signed up for the EPC contract to build a 240-kilometre gas export line, and the installation of oil and gas-gathering, gas lift and condensate lines. The $12 million EPC contract for the construction and supply of two wellhead jackets was awarded to Saff in July.

The UK's Kvaerner E&Ccarried out the front-end engineering and design (FEED) for the offshore development.

The only contract still to be awarded on the scheme is for the onshore portion, covering the construction of a gas treatment plant with two 500 million-cubic-feet-a-day (cf/d) processing units. Bids were submitted in January. Paris-based Technip-Coflexipcarried out the basic engineering for the onshore package.

Gas for the plant will be provided from the Salman field, which is located in the Dalan-Kangan (Khuff) reservoir, and from South Pars. It is understood that phases 2 and 3, which are already producing above target, are considered as a source of gas from South Pars.

Petro Iran won the $850 million buy-back contract to develop the Salman oil and gas field in 2000. The deal involves rebuilding war-damaged facilities, upgrading oil production by 45,000 barrels a day (b/d) to 130,000 b/d and the development of an associated gas handling network (MEED 17:11:00).

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