A West German company has won a contract to build new oil facilities worth GBP38,500,000 sterling ($90,000,000 U.
A West German company has won a contract to build new oil facilities worth GBP38,500,000 sterling ($90,000,000 U.S.) in Iraq. The company - Mannesman-Export - signed a contract in Baghdad on Friday (5 October) with the Iraq National Oil Company.
Mannesman-Export will build the on-shore facilities for a new deep sea oil terminal on the Persian Gulf. The Iraq National Oil Company and the West German company will build a pumping station at Rumails, which is in the heart of the oil fields on the Gulf. A main crude oil line and a gas line will also be built between Rumaila and Fao, which is on the Gulf. The contract includes the construction of a loading station at Fao with ancillary facilities. The contract for building the off-shore facilities has been awarded to a American company - Brown and Root Incorporated.
It's expected the work will be finished in two years. By then, all the new facilities should be capable of handling 130 million tons of crude oil a year.
The contract was signed by signed by Dr Saadoon Hammadi, Chairman of the Iraq National Oil Company. Mr Fritz Glaser and Mr Reinhard Schatzel signed the contract on behalf of Mannesman-Export.