Drake & Scull has been awarded a Dhs1.314 billion ($358.8 million) contract to install a pipeline in an Iraqi oilfield, in collaboration with Italy’s SICIM SpA.
Iraq’s government awarded the engineering, procurement and construction contract for a pipeline installation at the Zubair Oil Field in the south east of the country.
The deal is part of a series of contracts aimed at developing Zubair – one of the largest oil fields in the world – with officials predicting it will have an output of 1.2 million bpd by 2017.
Khaldoun Tabari, CEO of Drake & Scull International, said: “The Iraqi construction market offers massive potential in areas such as oil and gas where there is a huge demand for EPC contractors.
The UAE-based contracting services company shares deal to construct pipelines in southeast Iraq with Italy’s SICIM
“Our work on the Zubair Oil Field marks an important milestone for DSI and will optimize our exposure and market reach to the Oil & Gas domain”.
The deal will see Drake & Scull and SICIM lay pipelines to transport crude oil to productions facilities, water injection pipes and will replace old lines in the field.
The duo will also construct an 18km pipelines to carry oil exports from the field to a storage depot.
The contract represents Drake & Scull’s first project in Iraq and its first major oil contract in the Gulf.
Tabari added: “Our strong foot print in the region gives us the flexibly to fast track mobilization of resources on the ground. Our offices in Iraq are gearing up to tackle the complexities and dynamics of the project and we expect to complete the work in July 2014.”