Petrofac wins $229m Iraq oil deal

11 November 2012

UK engineering firm in joint venture with China Petroleum Engineering & Construction

A joint venture of the UK’s Petrofac and China Petroleum Engineering & Construction (CPECC) has been awarded a $229m contract for inspection, maintenance and repairs at the Rumaila oil field in the south of Iraq.

The contract was awarded by UK oil major BP and its partners in the Rumaila Operating Organisation (ROO), according to a 8 November statement from Petrofac.

The three-year contract is worth more than $160m to Petrofac, with the remainder going to CPECC. It covers the inspection, maintenance and repair of degassing stations, rotating machinery and cluster pumping stations.

ROO awarded Petrofac and CPECC a similar one-year inspection and maintenance contract in July 2011. Petrofac took $63m from the deal.

It was also awarded $100m contract in August this year by state-owned South Oil Company (SOC) to provide offshore operations and maintenance services for Iraq’s new oil export facilities, which are located 60 kilometres offshore in the Gulf near the Al-Fao peninsula.

The Rumaila deal brings Petrofac’s total engineering, procurement and construction (EPC), and operations and maintenance contracts in Iraq to $793m. It is also bidding on an estimated $500m deal to build three new degassing stations at the Zubair field in the south of Iraq.

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