Iraq's SOC lets contract for Sea Line project

Iraq’s South Oil Co. (SOC) let a $518 million contract for part of Iraq’s Crude Oil Export Facility Reconstruction Project, also known as the Sea Line Project, to Leighton Holdings Ltd. unit Leighton Offshore. The project includes two offshore platforms, a 75-km, 48-in. OD oil pipeline, and a single-point mooring system (SPM). The project will connect oil storage facilities to the offshore export terminal in Fao, Basrah, southern Iraq.

The contract is financed and supported through a Japanese official development assistance loan by Japan International Cooperation Agency.

SOC also let an additional SPM contract worth $79.85 million to Leighton Offshore, the scope of which includes an additional SPM, 3.5 km of 48-in. OD pipeline, pig launcher installation, conversion of spare SPM buoy to operational status, and replacement of spare buoy.

Both contracts are in addition to the $799 million Phase 1 Iraq Crude Oil Export Expansion Project (ICOEEP) work Leighton is currently completing. ICOEEP includes installation of 120 km of pipeline (two parallel 48-in., OD 50 km lines—10 onshore, 40 offshore—and 20 km of infield lines) as well as three SPMs (OGJ Online, Oct. 25, 2010).

The new SPM project will parallel Phase 1 work and is slated for completion by early 2012. ICOEEP aims to expand Iraq’s offshore loading facilities to enable export capability of 4.5 million b/d.

Contact Christopher E. Smith at chriss@ogjonline.com.

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