Samsung Engineering secures $840m Iraq plant order

March 31, 2014 - 11:55:46 am

SEOUL: Samsung Engineering Co., one of South Korea's top builders, said Monday that it has secured a US$840 million gas oil separation plant order from Iraq.

The contract is part of the larger Zubair Oil Field Development Project, which, once completed, will produce 200,000 barrels of oil per day.

The Zubair oil field is located near Basra, some 480 kilometers southeast of Baghdad, Yonhap news agency reported.

Samsung secured the deal from a consortium led by Italy's ENI S.p.A., Iraq's Missan Oil Company, Occidental and Korea Gas Corp.

Samsung Engineering said the lump sum turnkey project calls for the company to handle engineering and design, procurement, construction and conduct pilot operations.

Construction that officially kicked off on Sunday is expected to be completed by October 2016.

The company said the contract will strengthen its presence in Iraq, a country with the world's fifth-largest known oil reserves.

Samsung Engineering made its first foray into the Middle East country in 2012 with the $1.2 billion West-Qurna plant.

Followed by the $900 million Badra gas separation plant. (QNA)