IBBC Member Penspen Signs Power Plant Contract

August 2nd 2012
Oil and gas engineering group Penspen has signed an agreement with Siemens to provide engineering and procurement services for a new simple cycle power plant in Southern Iraq.

Siemens has agreed a base scope with the State Company for Oil Projects to work on the engineering and supply of the power plant and has in turn contracted Penspen to provide engineering and procurement services for the Balance of Plant.

Under the terms of the agreement, Siemens will provide the engineering and supply of the power island, and Penspen will provide the remaining engineering and supply of the Balance of Plant equipment/materials.

Work will begin this month and is expected to go on until 5th October 2013. There is also potential for a further additional scope of works to be agreed.

Senior Project Manager, Eduard Ilie said: “This is an important project for Penspen as it will provide a solid basis for the further development of our presence in Iraq and throughout the Gulf Region.”

Director of Onshore Michael Simm, said “We are delighted to have been awarded this project by Siemens and look forward to working with them to deliver a great outcome for SCOP.”

Iraq is trying to boost its crude oil exports from southern sea oil terminals located a few kilometers from Faw peninsula. Two new single-point moorings, or SPMs, buoys have been already built this year boosting Iraq’s crude oil export capacity from the south to nearly 3 million barrels a day from 1.6 million barrels a day last year.