Iraq’s cabinet has approved the award to Italy’s PEG of a contract to “build and operate” a 50,000 b/d processing unit at the 90,000 b/d Nasiriya oil field in Dhi Qar province. The Italian firm has won multiple projects in Dhi Qar and has a strong working relationship with Oil Ministry subsidiaries Dhi Qar Oil Company (DQOC) and State Company for Oil Projects (SCOP).
PEG was awarded another $320mn contract in April, as part of a consortium with SCOP, to deliver the second phase of a gas dehydration plant at the 250,000 b/d capacity Gharaf oil field. PEG and SCOP are also jointly delivering a 76km, 20-inch gas pipeline linking Gharaf to a 200mn cfd gas processing facility being constructed by Baker Hughes and to the southern gas grid. The pipeline is slated for completion this year. PEG was exempted from DQOC’s tendering requirements, allowing it to be directly awarded the contract. (CONTINUED - 155 WORDS)