Samsung Engineering, the first and largest engineering company in Korea, has officially announced its contract award from Gazprom Neft, a subsidiary of Gazprom, one of Russia’s largest oil and gas companies. The $879 million contract covers engineering, procurement and construction (EPC) for the Gas Separation Plant (GSP) on a lump sum turnkey basis in Iraq.
Samsung Engineering will be responsible for building the central processing facility, including the GSP (200MMSCFD) and the Utilities and Offsites (U&O) facility within 35 months. The plant is to be located at the Badra oil field in Wasit province in south eastern Iraq.
Russia’s Gazprom-led consortium will include South Korea’s KOGAS, Malaysia’s Petronas, and Turkey’s TPAO. This facility will produce 170,000 barrels of oil per day by 2017 as part of the oil development plan by the Iraqi Ministry of Oil.
“We are thrilled to be a partner of Gazprom for the first time and to be a part of ambitious oil project of Iraqi government,” said Steve Fludder, Senior Executive Vice President of Marketing at Samsung Engineering. “With our expertise in GSP projects, we will make sure to maximize client
satisfaction and contribute to the development of Iraqi society.”
This contract is significant to Samsung Engineering, considering Iraq has one of the largest oil reserves. As the largest leading EPC player in Iraq, Samsung Engineering is currently executing the West Qurna Phase 2 project awarded by Lukoil in 2012.