Leighton Chooses Lamprell for Iraq Crude Oil Export Facility Reconstruction

Lamprell, a leading provider of diversified engineering and contracting products and services to the onshore and offshore oil & gas and renewables industry, announces the award by Leighton Offshore Pte Ltd, a Singapore based company, of a contract for the fabrication of two topsides and jackets with metering skid and associated piping in connection with the Iraq crude oil export facility reconstruction.

The contract value is USD 62 million. The works will be performed at Lamprell’s Sharjah facility and are due for delivery in Q4 2012.

Nigel McCue, Chief Executive Officer, Lamprell, said: “Lamprell continues to make significant progress on a range of fronts. Iraq represents a key target market for Lamprell, and as such we are particularly excited to be announcing this significant new contract win with Leighton.”

The Crude Oil Export Facility Reconstruction Project (the “Sea Line Project”), aims to stabilize and expand Iraq’s crude oil export capacity, a lifeline of the Iraqi economy, by constructing a pipeline connecting crude oil storage facilities to the offshore crude oil export terminal in Fao, Basrah in Southern Iraq.

The project is financed and supported through the Japanese Official Development Assistance (ODA) Loan by Japan International Cooperation Agency (JICA).

Leighton Offshore is responsible for integrating, testing, commissioning and staff training of the ongoing project’s operational personnel and putting the entire pipeline system into service.

Subsea World News Staff , February 14, 2012;  Image: Leighton Offshore

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The subsea industry has, as all other parts of the oil & gas industry, been seriously rattled by the most severe downturn in the hydrocarbon energy era. However, the realization of what hit us and actions to be taken to sustain a healthy and profitable future is still on-going – unfortunately with thousands of colleagues paying the price by losing their job as one of the most severe consequences. At this time, there are signs that we have reached bottom in terms of most industry indicators, but few experts expect a sharp recovery. Many seem to believe that a slow recovery is what the industry needs in order to avoid an unsustainable capacity build-up, as seen in the period after the financial crisis. Considering the uncertainty of what the future will bring, this year’s UTC Program Committee have decided to challenge all of us to present ideas, experiences, technological innovations, business models and execution models for how to shape our subsea future and explain how and why subsea is the future.
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