An Italian company, Techint Engineering and Construction, has recently clinched a contract of $387.8 million. The aim of the contract is building the housing for workers at Iraq's giant Zubair oil field, as disclosed by the Iraqi council of ministers.
The field in southern Iraq was producing 195,000 barrels a day before it was awarded in 2009 to the Eni SpA (E) group, which also includes U.S. Occidental Petroleum Corp. (OXY) and Korea Gas Corp., or Kogas.
Since these major alterations, production of the oilfield has reached to 300,000 barrels a day and is expected to rise to 1.125 million barrels a day in 2017. However, for production increment, increasing the facilities for the workers is also very important.
Techint will develop a village for the workers. It will take 30 months to be finished the complete project that will be managed by Techint. However, no further details or no comments from the Techint officials have been achieved yet.
Last June, the Eni-led group awarded U.S. giant Weatherford International Ltd. (WFT) a crucial $843 million deal to build six initial production facilities, each with 50,000 barrels a day capacity. The facilities would definitely boost the oil production massively by bringing the production level to 300,000 barrels a day.
Italy's SICIM SpA was awarded last year a $358.8 million deal. This was the contract for building pipelines in the field.