OIEC to take Sirri NGL

26 September 2003
The local Oil Industries & Engineering Company (OIEC) is poised to win the estimated $270 million-280 million contract to develop Sirri oil field. Oil Minister Bijan Namdar Zanganeh said in September the company would sign up soon for the project with National Iranian Oil Company (NIOC).

The project will involve the installation of gas-gathering facilities on Sirri Island. These will consist of a gas liquefaction unit, a dehydration unit and a desulphurisation unit. The plant will have capacity to process 140 million cubic feet a day of gas and produce 30,000 barrels a day of NGL condensates. The lump-sum turnkey (LSTK) contract will involve every phase of the project from basic engineering to commissioning. The contract will have a duration of 42 months.

There were two other bidders for the project, one of which was disqualified on technical grounds. The other was a local consortium comprising Sazeh Consultants, Jahanpars and Kayson Group. It entered the tender after the others had bid $300 million for the project.

OIEC, which competed for the project alone, has recently completed two other gas-gathering stations for NIOC.

The client is Iran Offshore Oil Company (IOOC), a wholly owned subsidiary of NIOC. The project is not related to the Sirri oil field enhancement programme being carried out on a buyback basis by France's Total.

The project is a smaller version of the Kharg Island gas-gathering project, for which IOOC is now in negotiations with two consortia led by Japan's JGC Corporation and Sharjah-based Petrofac International. An award is expected towards the end of October.

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