Petro Iran originally selected a team of Iran Shipbuilding & Offshore Industries Company (ISOICO)and the local Amid Engineering & Developmentto carry out the engineering, procurement and construction (EPC) package. However, it failed to reach a final agreement and broke off negotiations. Sadra, which submitted the second lowest bid at $230 million, was then awarded the contract after it offered to carry out the job at ISOICO’s price.

South Korea’s Hyundai Engineering & Construction Companyand Malaysia’s SSEalso bid for the project, which covers seven platforms and two bridges.

Petro Iran is also negotiating final details with a team of Iran Offshore Engineering Company (IOEC)and Amid for the EPC pipeline package. The project, estimated to be worth around $150 million, covers a 240-kilometre gas export line and the installation of oil and gas gathering, gas lift and condensate lines.

The first offshore package was awarded in August 2002 to the local Saff Offshore for the $12 million EPC wellhead jacket contract. Front-end engineering and design (FEED) work was carried out by Kvaerner E&C, part of the Oslo-based Aker Kvaerner group (MEED 2:8:02).

The Salman project involves the reconstruction of facilities damaged in the first Gulf war with Iraq. It will lead to an increase in production by 45,000 barrels a day (b/d) to 130,000 b/d, as well as the development of an associated gas structure. Onshore work will involve the construction of two gas treatment units, each with capacity of 500 million cubic feet a day.