Mott MacDonald wins Iraq project management deal

23 July 2012

UK firm appointed for Badra oil field development in the Wasit Province

The UK’s Mott MacDonald has won a project management consultancy (PMC) contract with Russia’s Gazprom for its $3bn development of the Badra oil field in the southeast of Iraq.

Mott MacDonald was awarded the deal in May for the brownfield project which is expected to be completed by the second half of 2015, according to a source close to the project.

The scheme consists of two phases. The first phase is early production, with 15,000 barrels a day (b/d) targeted from eight wells by August 2013. The development will include a gathering system, separation train, oil export pipeline, oil tank farm, flaring system, and all instrumentation and control systems, as well as office building and accommodation for site personnel.

The second phase covers the full-field development where production will be increased to 170,000 b/d from 17 wells. The associated gas produced will be treated and exported to the Zubeida power plant. Produced water treatment facilities and a water injection system will also be added. The UK’s Petrofac is the lowest bidder for the central processing facility with a bid of about $350m.

Mott MacDonald was also appointed by Gazprom in June to carry out the front-end engineering and design (feed) for tank farm facilities and the gas pipeline to Zubeida. Engineering, procurement and construction tenders are expected to be launched in 2013.

Gazprom leads the development of the 3-billion-barrel Badra oil field in the Wasit province of south eastern Iraq, along with Turkey’s TPAO, Malaysia’s Petronas and South Korea’s Kogas. The group plan to lift production at the field to 170,000 b/d for a fee of $5.50 a barrel above 15,000 b/d.

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