BAGHDAD, Sept 19 (KUNA) -- The Iraqi government has awarded a deal worth up to USD 358.8 million to SICIM SpA, an Italian company that builds and installs oil pipelines, an Iraqi government spokesman said.

Ali Al Dabbagh said that the deal was approved by the Iraqi cabinet at its weekly meeting Tuesday. SICIM SpA has won the deal in partnership with the United Arab Emirates-based Drake & Scull International, he said in a statement.

The statement didn't elaborate on SICIM's plans for exploration and production of the Iraq's giant Zubair oil field. But the consortium clearly aims to set up a network of pipelines linking the field with the export facilities in southern Iraq.

The Zubair field--one of the largest of Iraq's oil fields-- was producing 195,000 barrels a day before it was awarded to the Eni-led group. Production has since reached 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.