According to the Iraqi government Spokesperson, Iraq and Eni SpA (E) group the largest oil prediction company of Italy, have signed a deal with the SICIM SpA on Tuesday. This is the Italian company which is known for the construction and installation of the oil pipelines. The amount of the deal is $358.8 million.
According to the statement made by Ali Al Dabbagh, this deal has been approved by the Iraqi cabinet in its weekly meeting on Tuesday. He has further added that the SICIM SpA has won the deal in partnership with Drake & Scull International the United Arab Emirates based company.
The statement hasn’t elaborated the plans of SICIM SpA with Zubair oil field and the spokesperson is also not available for comments. This connection though means that there is an aim of setting up a network of pipelines to ling the field with the export facilities working in the south of Iraq.
The Zubair service contract is of 20 years and it has been awarded to the Eni led group of companies, which has US based Occidental Petroleum Corp. (OXY) and Korea Gas Corp. (036460.SE) or Kogas, in the year 2009 in a licensing auction.
Zubair, one of the largest oil fields in Iraq used to product about 195,000 bpd of oil before it was awarded to Eni. After this company took over, the production increased and went up to 300,000 bpd. The expectation is, after the field development plan is complete in 2016, this amount will go up to 1.125 million bpd.
In the month of June, 2012, Eni group has awarded a deal worth $843 million dollar to the US company Weatherford International Ltd. (WFT) and according to the deal; this company will build six production facilities which will all produce 50,000 barrels per day of oil. These facilities will boost the production of the oil by about 300,000 barrels a day from Zubair.
Source [Fox Business]