Pakistani firm wins Iraq gas pipeline deal

13 April 2014

Techno Engineering Services selected for Badra to Zubeida pipeline

Russia’s Gazprom Neft has selected Pakistan’s Techno Engineering Services for the engineering, procurement and construction (EPC) of a new natural gas pipeline from the Badra oil field.

The 18-inch, 105-kilometre pipeline will transport approximately 155 million cubic feet a day (cf/d) of associated gas from the field’s central processing facility (CPF) to the Zubeida power plant in the south eastern Wasit province of Iraq.

The contract is estimated to be worth $150m.

The UK’s Mott MacDonald was appointed by Gazprom to carry out the front-end engineering and design (feed) contract for the pipeline and a tank farm in June 2013. It was also awarded a project management consultancy contract for the $3bn development of the field.

Construction is expected to be completed in 2015. The power plant will provide 24-hour electricity to the city of Kut, which current only receives around 16 hours of power a day.

The first phase of the Badra CPF is nearing completion by the UK’s Petrofac, with a capacity of 60,000 barrels a day (b/d). Construction work has also started on the field’s 150 million cf/d gas processing plant.

In March, Gazprom completed the construction of a 165-kilometre, 204,000 b/d crude oil pipeline from Badra to the Gharraf oil field where it connects to Iraq’s pipeline network. With the new pipeline in place, the Badra field can now supply crude to Iraq’s oil export terminal in Basra.

Gazprom leads the development of the 3-billion-barrel Badra oil field along with Turkey’s TPAO, Malaysia’s Petronas and South Korea’s Kogas. The consortium aims to produce 170,000 b/d by 2017 using 17 production wells and five injection wells.

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