Daewoo E&C secures $545 million Iraq degassing plant project

By Bahk Eun-ji

Daewoo Engineering and Construction (Daewoo E&C) has won a $545.8 million deal to build a degassing station (DGS) in Iraq, the company said Monday.

The contract calls for Daewoo to undertake the southern part of the three-pronged Zubair DGS project.

A degassing plant is a facility that extracts crude oil from natural gas, sand and sediments. The extracted crude oil is refined to make gasoline and diesel fuel.

When the construction is completed, the Zubair Oil plant will have a production capacity of 850,000 barrels per day. Currently it produces 195,000 barrels per day. The construction takes around 30 months and will start in June.

The company has a total of $3.2 billion in contracts overseas this year, including the one for the construction of the Akkas Gas processing plant in Iraq last year.

“It seems that we will achieve our annual target of $7.2 billion without difficulties,” a company official said.