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Sep 20 2012

Dubai's DSI Says Share of Iraq Oil & Gas Contract Worth About $180 Mln

Thursday, Sep 20, 2012

DUBAI (Zawya Dow Jones)--Dubai-based Drake & Scull International (DSI.DFM), or DSI, said its share of a pipeline installation contract at the Zubair oil field in southeastern Iraq is worth about $180 million.

DSI said it was awarded the $358 million contract along with SICIM SpA, an Italian company that builds and installs oil pipelines.

The project scope is engineering, procurement and construction, or EPC, services for oil and water flow lines, water trunklines, oil transfer pipelines, and connections to wellheads and degassing stations, DSI said in a statement posted on the Dubai Financial Market website.

Production at the Zubair field--one of the Iraq's largest--is currently about 300,000 barrels a day and is expected to rise to a plateau of 1.125 million barrels a day in 2016, once the full field-development plan is completed.

"The Iraqi construction market offers massive potential in areas such as Oil & Gas where there is a huge demand for EPC contractors," said DSI Chief Executive Khaldoun Tabari. "The country is also undertaking substantial developments to revolutionize its social infrastructure and as such we can expect demand for our type of services."

DSI shares closed Wednesday at AED0.84.

Write to Tim Falconer at tim.falconer@dowjones.com

Copyright (c) 2012 Dow Jones & Co.

(END) Dow Jones Newswires

20-09-12 0539GMT


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