Petrojet awarded $185m gas deal

22 April 2015

Firm to build central processing facility on southern Iraq development

  • Facility will have capacity of 110 million cf/d
  • Contract awarded by Kuwait Energy
  • Siba pipelines already under construction

Egypt’s Petrojet has been awarded a $185m contract to build a central processing facility (CPF) at the Siba gas field development in Basra province, Iraq.

The engineering, procurement and construction (EPC) contact was awarded by Kuwait Energy, the operator of the Siba Field Early Production project.

The scope of the contract includes the construction of a CPF with a capacity of 110 million cubic feet a day (cf/d) to treat the production fluids and raw water to produce dry gas.

The new facilities will include gas-gathering units from the well-sites, raw water in-take station located on the Shatt al-Arab river.

Kuwait Energy originally sought interest in companies to bid for the CPF in the third quarter of 2013. According to sources, the company re-tendered the package in early 2015 after prices in the original proposals came in too high.

In 2014, Kuwait energy awarded the EPC packages for the project’s condensate pipeline and liquefied petroleum gas (LPG) pipelines to Tunisia’s Engineering Procurement & Project Management (EPPM).

The 1.5 trillion-cubic-foot Siba field is operated by Kuwait Energy Iraq Limited, a subsidiary of Kuwait Energy in partnership with Turkish Petroleum Overseas (TPAO) and state-owned Missan Oil Company. The consortium signed a 20-year gas development and production service contract with the Oil Ministry in late 2010.

Kuwait Energy has three interests in Iraq. It is a partner with TPAO for the development of the Mansouriya gas field in the east of the country, and also leads a consortium for the exploration, development and production of the 866-square-kilometre Block-9 area in the south.

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