A contract of water injection and construction project cost as $61 million won by Drake & Skull International. The Dubai based engineering company, announced this news today while taking to BBC news in the early morning. EIB is responsible for redevelopment project of Zubair Oil Fields in Basra.
The contract of water injection network installation to the Drake & Skull International is awarded by EIB. According to the contract between both companies, the Drake & Skull International will be responsible for Engineering, Procurement and Construction works in the Zubair Oil Fields. It will include the engineering works for gas pipe line and water injection power system. The main purpose of this project is to enhance the oil recovery in the Zubair Oil Fields.
According to the terms of contract, the project will be completed by the end of 2018. Iraq is looking to enhance its oil production as fast as it can in the international market. Keep in the consideration that Iraq is the second largest oil rich country in the world after Saudi Arabia. Iraq considers Saudi Arabia as its competitors and wanted to defeat in international market in the production and export of crude oil. The oil production of Iraq has reached to its highest level in the international market.
Iraq produces 4.225 million barrels oil per day in the international market. Two years back, the total oil production of oil in the market was 2.25 million barrels that is almost double in 2016. Iraq has changed its norms for oil contracts in the country. The changes in the law for international investment have enhanced the interest of foreign companies to invest in different sectors of Iraq. Most of the companies are interested to get oil contracts. After looking these facts, the central government of Iraq passed a special resolution to grant special powers to the governors of provinces.
According to these special powers, every governor has given authority to enter into any contract with any international company wanted to invest in the oil sector of Iraq with any hesitation. According these powers, the governor is not forced to contact with the central government to fix the terms. Every province is provided with the expert team to analyze the things on different parameters to finalize the contract.
This is very first time that Iraq provided these special powers to the provinces only to enhance the foreign direct investment in the oil sector of Iraq. Some of the companies are awarded contracts to find out new oil reserves in the country and some are awarded with the contracts to develop the recent oil fields available in the different areas of the country.