OTEC and Alstom take IGAT-5 gas station job

21 November 2003
The local Oil Turbocompressor Engineering Company (OTEC)in partnership with France's Alstomhas signed a $290 million contract with National Iranian Gas Company (NIGC)to build a compression station on the IGAT-5 gas pipeline. Ten groups of local and international companies bid for the contract in June, with the OTEC/Alstom team being the low bidder among the highest-ranked group of technically qualified contractors (MEED 4:7:03).

The engineering and procurement (EP) contract will involve building a booster gas compressor station on the IGAT-5 pipeline, which will deliver gas to the Aghajari oil field for reinjection. The feedstock will be supplied from the Salman and South Pars gas fields. The scheme is intended to increase oil recovery at Aghajari, although some industry sources say it will more likely extend the longevity of the field than lead to incremental production.

One pipeline package has already been awarded on the scheme: the $235 million contract to the local Safato lay 410 kilometres of pipeline. NIGC is now evaluating bids for the second, 240-kilometre pipeline package, expected to be worth less than $100 million and to go to a local group. Financing is being provided by Japan's Mitsui & Company.

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