The works, to be carried out on an engineering, procurement and construction (EPC) basis, are part of a larger scheme comprising the onshore and offshore development of the Salman gas reserves. Petro Iran, a subsidiary of the National Iranian Oil Company, has the $850 million buy-back contract to develop the Salman oil and gas field (MEED 17:11:00).

The gas treatment plant, to be set up at Bandar Assaluyeh, will be split into two 500-cubic-feet-a-day processing units. Gas to be processed will come from the Salman field, which is shared with Abu Dhabi, and from the northern onshore Aghar-Dalan gas field. South Korean and European companies feature prominently among those bidding for the onshore plant, industry sources say.

Petro Iran is expected to award the contract for the onshore basic engineering package to France's Technip. The UK/Norwegian Kvaernerwon the front-end engineering and design (FEED) contract for the offshore development earlier this year.

Tendering for the offshore EPC package is under way following Petro Iran's issue of prequalification documents in late September. The contract calls for the provision of a wide range of platforms, including wellhead, riser and production platforms, as well as the construction of a 240-kilometre gas export line, oil and gas gathering lines and gas lift and condensate lines (see Tenders).

Petro Iran won the contract to develop the Salman field last year. The deal requires rebuilding war-damaged facilities and upgrading production by 45,000 barrels a day (b/d) to 130,000 b/d and the development of an associated gas structure.