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February 5, 2013

Samsung Engineering awarded Iraq Gazprom Badra GSP contract

Gerald Ondrey

Samsung Engineering Co. (Seoul, South 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 (200 MMSCFD) 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 bbl/d of oil by 2017 as part of the oil development plan by the Iraqi Ministry of Oil.

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.


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