Iran and Iraq have dominated the value of contract awards for October, with a total of $14,6bn across Bahrain, Kuwait, Oman, Qatar, UAE, Saudi Arabia, Egypt, Iran and Iraq.

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Middle East contract awards October 2015

French company wins Iraq refinery contract

  • Veolla Water Technologies has been selected to provide a water recovery unit for the Karbala New Refinery
  • The plant will have a capacity of 55 cubic metres an hour
  • It is one of four refineries planned by the Oil Ministry

Iraq’s State Company for Oil Projects (Scop) and its contractor have selected France’s Veolia Water Technologies to engineer, procure and deliver a water recovery unit for the $6.04bn Karbala New Refinery project in the Karbala province.

The main engineering, procurement, and construction (EPC) contractor on the project is HDGSK, a joint venture comprising Korea’s Hyundai Engineering & Construction (E&C), Hyundai Engineering Company, GS E&C, and SK E&C.

The EPC contract for the Karbala New Refinery was awarded on 7 January 2014.

The 140,000 barrel-a-day (b/d) facility is one of four refineries planned by the Oil Ministry in order to boost the country’s refining capacity by 750,000 b/d.

“The Karbala refinery is due to become the most technically advanced refinery in Iraq,” says Ignacio Martinez, vice-president of Veolia. “Veolia is proud to contribute its strong expertise in zero liquid discharge and waste reduction processes, helping Scop and the HDGSK joint venture meet their economic and environmental goals.” 

Veolia’s Zero Liquid Discharge Evaporator and Crystalliser plant will have a capacity of 55 cubic metres an hour, and is scheduled for delivery in August 2016.

Hyundai E&C and its affiliate Hyundai Engineering have a combined 37.5 per cent stake in the project, worth about $2.3bn. GS E&C also has a 37.5 per cent stake, while SK E&C has a 25 per cent stake worth $1.5bn. 

SK E&C is responsible for the water utilities at the refinery, and chose Veolia´s Zero Liquid Discharge technology for the project.  

Veolia´s contract was announced in a statement released by the company on 15 October. The firm did not reveal the value of the deal.

Iran plans $6bn of oil projects with Russian energy group

  • Iranian media says two countries plan $35-40bn project package
  • State-run Zarubezhneft specialises in overseas oil field development
  • Iran offered gas swap deals by Gazprom

Iran has agreed to award Russian state-owned energy group Zarubezhneft work on several oil projects worth $6bn, according to Iranian media reports.

The deal was signed as part of a series of agreements between the two countries during a 50-member Russian delegation to Tehran led by Russia’s Energy Minister Alexander Novak.

Iran’s Press TV reported that the two countries have planned a package of projects that are collectively worth $35-40bn.

It is unclear which projects or sectors of the Iranian oil industry Zarubezhneft plans to enter.

Moscow-based Zarubezhneft is a state-controlled company that specialises in the exploration, development and operation of oil and gas fields outside of Russia. Its largest presence is a joint venture in Vietnam with PetroVietnam.

Iran has drawn up new contracts to attract more foreign investment in its oil and gas sector to tie-in with the lifting of nuclear-related sanctions against its economy.

Tehran is thought to be lining up agreements to develop its oil and gas fields after the sanctions are lifted.

During the delegation to Tehran, Russian energy group Gazprom offered gas suppliers to Iran under a swap agreement, and oil deals were also under consideration, Novak told the Russian media.

Iran has previously used swap deals with its northern neighbours to cut the logistics costs of supplying its northern regions with gas.

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