AMSTERDAM–Dutch dredging and maritime services provider Royal Boskalis Westminster N.V. (BOKA.AE) said Thursday that its Smit Lamnalco associate has been awarded a $35 million a year contract by Petrofac Ltd. (PFC.LN) to support Single Point Mooring operations for the Iraq Crude Oil Export Expansion Project (ICOEEP).
The Single Point Mooring (SPM) contract covers operations and maintenance of four SPM systems operations located approximately 20 km off the Al Fao Peninsula, a region adjoining the Persian Gulf in the extreme southeast of Iraq and home to number of key oil installations.
Boskalis says that the annual contract value is approximately USD 70 million, with Boskalis holding a 50% share, and services will commence November 2012.
The contract has an initial duration of one year with two annual extension options that could translate to a potential total contract value of USD 200 million. The agreement involves the full scope of maritime support services for the crude oil export facilities.
The Iraq Crude Oil Export Expansion Project (ICOEEP) is perhaps the most important strategic project in the Iraqi Ministry of Oil’s (MoO) Master Plan 2007. The project aims to expand offshore loading facilities in order to increase export capacity from 1.75 Mbbl of oil per day to 4.5 Mbbl of oil per day by 2014.