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CPECC in the lead of Gazprom Badra pipelines package

Badra Export pipeline and Infield pipeline awarded soon

Gazprom continues to award engineering procurement and construction (EPC) contracts for the different packages of its $2 billion Badra development project.

Badra oil field is located in the Wasit Province at the Southeast of Iraq.

Badra is part of these giant fields that the Iraq Government intends to develop to increase its production from actual 2.8 million b/d to 6 million b/d in 2020.

In the Badra oil field the working interest are shared between: – Gazprom 30% the operator

 – KOGAS 22%

 – Petronas 15%

 – TPAO 7.5%

Technip had completed the FEED on first half 2011.

In February 2012, Gazprom awarded Petrofac for the EPC contract, valued at $329 million, to build the first central oil gathering & treatment station (CPF 1).

This CPF1 package includes:

 – Three oil treatment lines with a capacity of 60,000 barrels per day

 – A pump station

 – Oil storage facilities

 – An oil metering station

In May 2012, Gazprom selected  Samsung Engineering for the $ 900 million new  Central Processing Facility (CPF-2), ahead of Petrofac and Saipem.

This CPF2 package includes:

 – Gas treatment station with a capacity of 1.5 billion cm/y

 – Water injection

 – Three crude oil processing trains

CPECC leads Gazprom Badra pipeline package

Among the most important packages still to be awarded for the Badra oil field development project, the pipeline package should be awarded soon by Gazprom.

Five bidders are in competition:

 – CPECC from China

 – Dodsal from the UAE

 – Petrofac from UK

 – Punj Lloyd from India

 – Saipem fom Italy

This Badra pipelines package includes two pipelines:

 – Export pipeline

 – Infield pipeline

The Export pipeline is 24-inch, 165 kilometers long to carry on the oil from the Badra oil field to the Garraf field.

Gazprom estimates the capital expenditure for the export pipeline around $190 million.

The infield pipeline is a network of oil and gas and water connecting wellheads and central processing facility and the storage facilities.

The Infield pipeline capital expenditure is approximated to $130 million.

Gazprom intends to award the Export pipeline and the Infield pipeline in a single EPC package which should end up around $300 million.

In this competition CPECC is the lowest bidder.

CPECC stands for China Petroleum Engineering and Construction Company, a Chinese Institute belonging to the National Oil Company (NOC) PetroChina (CNPC)

Gazprom and its partners,KOGAS, Petronas and TPAO, are expecting the Badra oil field to produce 180,000 b/d crude oil in the second half of 2015.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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