South Korean group signs $840m contract for new facilities at Zubair oil field
After receiving approval from the Iraqi government in late February, South Koreas Samsung Engineering have signed a $840m engineering, procurement and construction (EPC) deal for a new degassing station at the Zubair field in the south of Iraq.
Executives from Samsung, state-owned South Oil Company (SOC) and Italys Eni, the developer of the Zubair field attended a signing ceremony on 30 March.
Samsung Engineering will be build the 200,000 barrel a day (b/d) Hammar Mishrif degassing station on a lump-sum turnkey basis. The project is expected to reach completion in 2016.
Iraqs cabinet had initially approved a $894.4m deal.
Hyundai Engineering & Construction, another South Korean firm was also approved for a second degassing station at Zubair, worth $818.2m, but a contract is yet to be signed.
Samsung Engineering has now won an estimated $2.7bn worth of EPC contracts in Iraqs oil and gas sector, making it one of the largest contractors working in the country.
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