Saipem


Saipem wins contract at West Qurna

By John Lee.

Italy’s Saipem has been awarded a contract by ExxonMobil Iraq Limited for the DS6 project for the debottlenecking of the West Qurna field, in the south east of Iraq.

Debottlenecking is a process that optimises a plant in order to increase its overall capacity.

The works will have a duration of 23 months and will mainly be executed in the Rumaila fabrication yard, owned by Saipem.

(Source: Saipem)

(Picture: Saipem chief executive, Stefano Cao)

New Allegations of Massive Corruption in Iraq Oil Industy

By John Lee.

An investigation by Fairfax Media — publisher of The Age and The Sydney Morning Herald newspapers — and The Huffington Post, claims that Monaco-based Unaoil has been involved in widespread bribery and corruption in the oil industry, including in Iraq, Iran and Libya.

Following examination of tens of thousands of emails, the report says that Unaoil channelled huge bribes to government officials on behalf of its clients to help win billions of dollars worth of government contracts.

In Iraq, it accuses the company, and its country manager Basil Al Jarah, of arranging bribes for clients including Rolls-Royce, Petrofac, Clyde Pumps, Weatherford, Cameron/Natco, FMC Technologies, Saipem, SBM Offshore, MAN Turbo, Rosetti Marino, ABB, The Shaw Group, Core Labs, Leighton Offshore, Weir and Hyundai.

Public officials allegedly implicated include Dr Hussain al-Shahristani, former Minister for Oil and current Minister for Education, who has denied any wrongdoing; Abdul Kareem al-Luaibi [Elaibi], former Minister for Oil; Kifah Numan, Director General of the South Oil Company (SOC); Dhia Jaffar also a Director General of the SOC and since last year a Deputy Minister for Oil in the Iraqi government; and Oday al-Quraishi (SOC).

According to the report, “Unaoil made Dhia Jaffar and Oday al-Quraishi wealthy men.

Family owned and controlled, Unaoil was founded by the Iranian-born Ata Ahsani, who left Tehran at the time of the Islamic revolution. The company says it “strenuously [denies] any wrongdoing and consider[s] the allegations to be baseless and entirely false.

The original story can be read in more detail here.

(Source: The Age)

(Corruption image via Shutterstock)

Iraq Shortlists Candidates for Jordan Pipeline

By John Lee.

The Wall Street Journal and Reuters report that Iraq has shortlisted 12 international companies to build the new $18-billion oil export pipeline to Jordan, the country’s first such pipeline in decades.

Iraq’s oil ministry has chosen these companies from a list of more than 80 international firms which submitted their credentials to build a section of the 1,040-mile pipeline from Basra to Jordanian Red Sea port of Aqaba.

The short-listed companies and consortiums are:

  • Lukoil, of Russia;
  • China National Petroleum Corporation (CNPC);
  • Marubeni Corporation, from Japan;
  • Mitsui (Japan);
  • Toyota Tsusho (Japan);
  • Punj Lloyd (India) and Mass Global International (Iraq);
  • Saipem (Italy);
  • Daewoo International Corporation (Korea);
  • Consolidated Contractors Company (CCC), from Greece;
  • Go Gas, Larsen & Toubro (L&T) and Fius Capital;
  • Petrofac and Stroygazconsulting (SGC); and,
  • Orascom and Petrojet (Egypt).

It is understood that the State Company for Oil Projects (SCOP) will invite the short-listed companies to receive the tender package, and then submit their offers by November or December.

Iraq and Jordan signed a preliminary agreement in April to build the section of the pipeline that would stretch from an Iraqi oil pumping station in Haditha, west of Iraq, to Aqaba. The rest of the pipeline, which is 680 kilometers long, linking a Basra pumping station with the one in Haditha would be built and financed by the Iraqi oil ministry.

Iraq hopes the pipeline will make it less dependent on Persian Gulf export terminals, providing an alternative route if Iran closes the Strait of Hormuz.

A third section of the pipeline, running to Syria’s Banias port in the Mediterranean, has been postponed because of the conflict in the neighboring country. It would have a capacity of 1.25 million barrels a day.

(Sources: WSJ, Reuters)