Iraqi Cabinet approves $330m Petrofac CPF deal

CPF is essential to Gazprom and its Asian partners at Badra meeting the oil ministry's production target of 170,000 barrels per day by 2017.

Petrofac, the UAE-based oil field EPC and services firm, had its $329.8 million tender for the contruction of a central processing facility at the Gazprom-operated Badra oil field approved by the Iraqi cabinet late yesterday.

Petrofac low-bid for the facility EPC contract in December last year, according to MEED. technip completed the FEED stage last year.

The CPF is essential to Gazprom and its Asian partners at Badra meeting the oil ministry's production target of 170,000 barrels per day by 2017. The Russian oil firm says the field holds 3 billion barrels of recoverable resources and expects to begin producing at the field in August 2013.

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Schlumberger is already drilling at the field under a three-year 11-well contract, and spudded its second appraisal well in late January.

Gazprom headed the only consortium bidding to develop the field, and was awarded the field development contract in 2009 after settling for a $5.50 fee per barrel produced. The firm estimates it will have to invest $3.5 billion to bring the field up to spec.