Daewoo bags $545.8m degassing project in Iraq

May 19, 2014 - 12:04:09 pm

SEOUL: South Korea builder Daewoo Engineering and Construction Company Monday said it bagged a $545.8 million degassing station (DGS) project in Iraq.

The contract is part of the larger Zubair DGS project underway some 20 kilometers from Basra.

A degassing plant is a facility that extracts crude oil from natural gas, sand and other sediments. The crude oil extracted is then refined to make gasoline and diesel fuel.

The project, broken up into North, Center and South projects, was commissioned by ENI Iraq Bv, a consortium made up of energy companies such as ENI, Occidental, Missan Oil Company and Korea Gas Corp. Daewoo E&C won the South part of the project.

When the work is completed, the Zubair Oil Field will be able to churn out 850,000 barrels per day, up from 195,000 barrels at present. The builder said its portion of the project will start around June and take about 30 months.

The latest order brings the total amount of overseas contracts for the company so far in 2014 to over $3.22 billion.

The builder said that since most overseas construction orders are placed in the second half, its annual target of $7.2 billion will likely be reached without difficulty. (QNA)