SNC-Lavalin awards project to ExxonMobil for building oil facility in Iraq

SNC-Lavalin says that its Kentz group has been awarded a contract by ExxonMobil to design and build a new oil processing facility in Iraq. The facility in the Al Basra province is expected to be completed in 26 months. However, no value of the contract has been disclosed.
Maxim Sytchev of Dundee Capital Markets estimated SNC-Lavalin's (TSX:SNC) share of project at about $500 million, with the same amount going to a regional partner. The contract would represent about 11 per cent of SNC-Lavalin's oil and gas sector backlog and four per cent of the company's $12.4 billion in contract bookings.
The analyst said the contract underlines SNC's ability to source oil and gas work globally, something Sytchev said investors don't fully appreciate.