Leighton International's Magazine, Perspective, Issue 6 2010

NEW PROJECTS
19
MAXIMISING
OFFSHORE OPPORTUNITIES
IN THE GULF
LEIGHTON OFFSHORE SIGNED AN EPC CONTRACT WORTH US$733 MILLION
WITH IRAQ’S SOUTH OIL COMPANY – A VITAL PROJECT IN IRAQ’S STRATEGIC ENERGY
REDEVELOPMENT PROGRAM.
The contract forms part of the Iraq
Crude Oil Export Expansion Project
(ICOEEP) which is developing offshore
loading facilities to enable export
capability of 4.5 million barrels of oil
per day.
The project scope includes:
Installation and commissioning of two
48-inch parallel pipelines, 10 kilometres
onshore and 40 kilometres offshore,
linking the new Fao onshore terminal to
the new SPMs, plus approximately 20
kilometres of infield pipelines, and the
shore crossing for a third pipeline to be
installed during future expansions (a
total of over 120 kilometres of pipeline).
Installation of SPMs complete with
subsea pipeline end manifolds (PLEMs)
capable of receiving and loading Very
Large Crude Carrier (VLCC) tankers.
Fabrication and installation of a 600MT
subsea valve manifold for directing flow
between the existing and future
offshore export facilities.
Dredging works to achieve pipeline
burial and to achieve sufficient water
depth for VLCCs mooring to the SPMs.
Construction and commissioning
(including civil, mechanical and
electrical works) for the new onshore
metering and manifold facilities at
Fao terminal.
Leighton Holdings Chief Operating
Officer, David Savage, said “This project
is a fantastic opportunity for Leighton,
and coming closely behind the recent
SPM project win in Tanzania, provides
strong recognition of Leighton’s strength
and experience in SPM installations.
“In recent years, Leighton has built an
enviable track record on SPM’s and large
diameter pipelines, having worked on
some 13 SPM’s around the Asia region.
“This is the first major offshore project for Leighton
in the Middle East, but with the opportunities in the
Gulf and the MENA region, we are very confident it will
be the start of a strong business line that will provide a
steady revenue volume for both Leighton Offshore
and Al Habtoor Leighton.”
“Being awarded the Middle East’s largest
and most prominent SPM contract is a
great honour for us and great reflection
of the strength of our capabilities,”
Savage said.
Leighton Offshore will use its vessels,
Eclipse, Stealth and Mynx on the project.
Eclipse, Stealth and Mynx are ideally
suited for working on SPM projects, and
provided Leighton a key edge in securing
this work. Leighton operates a very young
fleet of state of the art vessels, all of
which are fully compliant to latest
class and safety standards including
International Special Purpose Shipping
code.
“In the Middle East we have the benefit
of tapping into Al Habtoor Leighton” said
Savage. “Al Habtoor Leighton has an
agreement with Leighton Offshore to
provide support with logistics and
resource services for offshore projects in
the MENA region and has played a
positive role in securing this project.
“This is the first major offshore project
for Leighton in the Middle East,” Savage
said, “but with the opportunities in the
Gulf and the MENA region, we are very
confident it will be the start of a strong
business line that will provide a steady
revenue volume for both Leighton
Offshore and Al Habtoor Leighton.
LOCATION:
FAO TERMINAL, AL BASRAH,
SOUTHERN IRAQ
CLIENT:
SOUTH OIL COMPANY, IRAQ
CONTRACT TYPE:
EPC LUMP SUM
CONTRACT VALUE:
USD733 MILLION
COMMENCEMENT:
EARLY 2011
COMPLETION:
END OF 2012