BP awards US$500mn service contract to Petrofac in Iraq

oil8Petrofac has been awarded a service contract worth US$500mn by BP for Rumaila oilfield in Iraq

The UK-listed company said that it would provide the management and staff to coordinate a number of construction projects at what is estimated to be the world’s third-largest oilfield, which lies 32 km north of the Kuwaiti border.

Under the terms of the contract, which runs for three years with an option for further extension of two years, it will also supervise work undertaken by third-party contractors.

The move is part of attempts by BP and partners in the Rumaila Operations Organisation — China National Petroleum Company (CNPC) and South Oil Company — to quickly increase production at Rumaila, which is estimated to contain 17bn barrels of oil.

Mani Rajapathy, senior vice-president for the Middle East at petrofac, said, “The award builds on an established track record for Petrofac in Iraq, in particular at Rumaila, dating back to 2011.”

Petrofac also reported that it had been selected to provide engineering and construction support worth up to US$120mn for Chevron’s three platforms in the UK’s North Sea – the Captain, Alba, and Erskine.

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