Petrofac Picks up Kogas Job in Iraq

Petrofac has been awarded a front end engineering design (Feed) modification contract by South Korean gas utility Kogas subsidiary, Kogas Akkas, for its Nasiriya Gas Treatment Plant (GTP) in southern Iraq.

Scope of work includes the modification and application of an existing field design to meet the needs of the Nasiriya GTP, and an estimation for the engineering, procurement and construction (EPC) costs in line with the revised design requirements. No contract value was disclosed by Petrofac.

“Kogas is a new client for us in a core market and we look forward to further developing our relationship through the successful delivery of this scope,” said Petrofac’s senior vice president for engineering and production services in the east, Steve Webber: “This award is testament to our engineering design capabilities, as well as our deep understanding of the market and supply chain in Iraq.”

Kogas won a multi-billion contract in 2011 to develop the Akkas gas field in western Iraq. However Petrofac tells NGW that Kogas Akkas is simply the entity that has awarded it a Feed scope in respect of the Nasiriya gas development, which is south of Baghdad.

Kurdish referendum 'will increase instability'

The announcement comes as, in northern Iraq, the Kurdish Regional Government announced a turnout of over 70% in a non-binding referendum held September 25 on whether the region should declare its independence from Iraq. A pro-independence result is expected.

Iraqi PM Haider al-Abadi a week ago called for the poll to be suspended, while Turkey's president, Recep Tayyip Erdogan, on September 25 warned that Turkey could block KRG oil exports were it to take steps towards independence. The same day, the US State Department said: “The US is deeply disappointed that the Kurdistan Regional Government decided to conduct today a unilateral referendum on independence, including in areas outside of the Iraqi Kurdistan Region. The US’ historic relationship with the people of the Iraqi Kurdistan Region will not change in light of today's non-binding referendum, but we believe this step will increase instability and hardships for the Kurdistan region and its people.”

Mark Smedley