Daniel Canty , February 6th, 2013
Korea’s Samsung Engineering has confirmed it has won an $879 million contract award to cover the engineering, procurement and construction (EPC) for a Gas Separation Plant (GSP) on a lump sum turnkey basis in Iraq for Gazprom Neft at the Badra oil field in south eastern Iraq.
Samsung Engineering will be responsible for building the central processing facility, including the GSP (200 million Standard Cubic feet per day capacity) and the Utilities and Offsites (U&O) facility within 35 months.
Russia’s Gazprom-led consortium will include South Korea’s KOGAS, Malaysia’s Petronas, and Turkey’s TPAO. This facility will produce 170,000 barrels of oil per day by 2017 as part of the oil development plan by the Iraqi Ministry of Oil.
“We are thrilled to be a partner of Gazprom for the first time and to be a part of ambitious oil project of Iraqi government,” said Steve Fludder, Senior Executive Vice President of Marketing at Samsung Engineering.
“With our expertise in GSP projects, we will make sure to maximize client satisfaction and contribute to the development of Iraqi society.”
Samsung Engineering is currently executing the West Qurna Phase 2 project awarded by Lukoil in 2012.
The Badra oil field is one of the largest under development in Iraq and is thought to hold around three billion barrels of oil. The filed is expected to produce around 170,000 barrels per day when the $2 billion development plan is complete, with a huge amount of associated gas generated too.