LG, which has been the low bidder since early 2002, is set to carry out the two-phase engineering, procurement and construction (EPC) contract in co-operation with local consortium partners Iranian Offshore Engineering & Construction Companyand Oil Industries Engineering & Construction. The group won the deal against competition from Paris-based Technip-Coflexip, which was in partnership with a group of local companies known as Sunfire Engineering & Management.
Financing for phases 9-10 will be provided through a multi-source facility, rather than being based on the more prevalent buyback framework. ING Investment Bankingis acting as financial adviser for the LG-led consortium.
Phases 9 and 10 will produce 2,000 million cubic feet a day of gas for domestic use, 80,000 barrels a day of condensate and more than 1 million tonnes a year of liquefied petroleum gas (LPG) for export.
The next award in the South Pars programme will be for phases 11-12, which includes developing a portion of the field for liquefied natural gas (LNG).