BP inks $90m Iraq contract
BP has splashed out $90 million on a one-year contract at its huge Iraqi oilfield for a pair of oil infrastructure stalwarts.
Petrofac and China Petroleum Engineering & Construction (CPECC) have picked up the deal for inspection, repair and maintenance work at the giant Rumaila field in the south of the country.
UK-based Petrofac will, as leader of the contract, pocket $63 million of the funds, an announcement read today.
"Work will commence following a short transition and the scope of the contract covers rotating machinery, degassing stations and cluster stations," the announcement continued.
BP operates the oilfield which it discovered in 1953 and which is currently producing 1.3 million barrels per day of oil. The British supermajor is currently producing a total of 2.5 million bpd of oil in Iraq.
Chief executive Bob Dudley said earlier this month that he expects Iraq's likely output to be only half of the government's official target of 12 million bpd by the end of the decade.
Petrofac has already scooped one deal in Iraq this year after receiving a $240 million contract from the Shell-Petronas partnership for early production facilities at the giant Majnoon oilfield.
