Royal Boskalis Westminster has announced that its associated company Smit Lamnalco has been awarded a significant annual contract by Petrofac to support Single Point Mooring operations 20 km off the Al Fao Peninsula for the Iraq Crude Oil Export Expansion Project.
The annual contract value is approximately $ 70 million (Boskalis share 50%) and services will commence November 2012.
The Single Point Mooring (SPM) contract covers operations and maintenance of four SPM systems. The contract has an initial duration of one year with two annual extension options resulting in 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 SPMs off Fao are taking increasing quanities of crude as the south's oil exports reach 2.5 million barrels a day.
Boskalis' strategy is aimed at benefitting from key macro-economic factors which drive worldwide demand in our markets: expansion of the global economy, increase in energy consumption, global population growth and the challenges that go hand in hand with climate change.
This project is closely related to the increasing energy consumption for which Boskalis facilitates the global transport of oil and natural gas by providing maritime and terminal services through Smit Lamnalco.