LG closes in on South Pars

10 May 2002

A consortium led by South Korea's LG Engineering & Constructionis understood to have been selected to carry out phases 9 and 10 of the South Pars offshore gas field development. The client on the scheme, the local Pars Oil & Gas Company (POGC), has not yet confirmed the deal but is expected to announce the contract award officially by the end of May (MEED 8:2:02).

POGC, a subsidiary of the National Iranian Oil Company, last year received two proposals to carry out the project on an engineering, procurement and construction (EPC) basis. The consortium comprising LG Engineering & Construction and local companies Iranian Offshore Engineering & Construction Companyand Oil Industries Engineering & Constructionsubmitted the lowest offer at about $1,600 million.

The other bidder on an EPC basis was Paris-based Technip-Coflexip, in partnership with Sunfire Engineering & Management, a group of local companies.

Phases 9 and 10 will produce 2,000 million cubic feet a day of gas for domestic use, and condensate and liquefied petroleum gas (LPG) for export.

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