The Dubai-listed Drake & Scull International has been awarded an AED226 million ($61.5m) engineering, procurement and construction (EPC) contract for the construction of a water injection network installation project at the Zubair oil field in Basra, Iraq, by ENI Iraq B.V. (EIBV).
The engineering firm said that under the terms of the agreement, Drake and Scull Oil & Gas (DSOG) will oversee the EPC process of a gas supply pipeline system to a power plant in addition to water injection systems consisting of flow lines, trunk lines, manifolds stations and wellheads hook-up work to enhance oil recovery. Mobilisation activity on the project has commenced with a scheduled completion of early 2018.
EIBV, a subsidiary of the Italian oil and gas multinational firm ENI S.p.A., is the lead contractor of the Zubair Project consortium which currently comprises EIBV, Occidental of Iraq LLC and KOGAS Iraq B.V. which is undertaking the redevelopment of the Zubair Oil Field.
“DSOG continues to achieve substantial progress and has gained a noticeable foothold in the oil and gas infrastructure construction sector in the MENA region in a short period (of time),” said Wael Allan, COO of Drake & Scull International.
“The contract award has also raised DSI’s total project wins to AED570 million in very challenging circumstances. We are confident that our high margin businesses including Oil & Gas, Rail & Infrastructure and Engineering will significantly contribute to our sustainable growth, in line with our strategy of focusing on profitability and cash generation.”
Fares Khatib, managing director of DSOG, added: “The Zubair oilfield contract is a positive development for DSOG, particularly as it represents our second collaboration with EIBV. EIBV had previously awarded us the EPC pipeline installation contract for the Zubair oil field in 2012 which was successfully completed in 2015 on the strength of our in-house engineering management, procurement and construction capabilities. Our prior experience with EIBV in the Zubair oil field will prove invaluable in ensuring the successful execution of project delivery on the new project award. We are committed to leveraging the skillset and experience of our teams in Iraq and Abu Dhabi to achieve scheduled project progress and meet our completion target.”