WorleyParsons has been awarded a three year contract by Shell Gas Iraq BV to provide project management support and services for the rehabilitation of gas facilities and infrastructure that are part of the scope of Basrah Gas Company.
In November 2011, as part of a push to make better use of its gas resources, Iraq’s government signed a deal with Shell and Mitsubishi to develop the world’s largest flares reduction company, BGC. BGC is expected to commence operations early next year. It is a 25-year joint venture with state run South Gas Company holding a 51 percent stake, while Shell Mitsubishi hold a 44 percent and five percent interest respectively. This joint venture is designed to capture, treat and monetise associated gas currently being flared from three southern oilfields, wasting more than 10 million dollars per day of the country’s natural resources.
Under the deal, WorleyParsons will provide project management, technical and construction supervision personnel to support BGC in rehabilitation inspection, engineering, procurement and construction (EPC) activities. WorleyParsons will also provide a project management system which will help manage and control the project effectively during its execution from the plant inspections through to engineering and design concluding with commissioning.
The contract will be executed from WorleyParsons’ offices in Iraq and the United Arab Emirates. The man-hours to be performed by WorleyParsons over the life of the contract are estimated to exceed 500,000 man-hours.
Commenting on WorleyParsons' win, the company's CEO, Andrew Wood, said: "We are pleased to continue our involvement in the development of Iraq’s gas infrastructure as well as being part of this project that will significantly contribute to the sustainability of the Iraqi economy and environment. We will work closely with the development partners to ensure we create the maximum value over the lifetime of the asset."