It is reported that Iraq's cabinet approved a USD 468.5 million (AED 1.72 billion) preliminary contract with Saipem SpA, Europe's largest oilfield services provider to develop export facilities in the country's south. The project's duration will be two years.

Saipem, controlled by Italy's ENI SpA, was chosen over a unit of Australia's Leighton Holdings, which bid USD 503.1 million.

Iraq plans to modernise terminals at the port of Basra and other southern shipping facilities to spur the economy and improve the country's capacity to export oil, its main source of revenue. The government needs to boost energy shipments to pay for reconstruction after decades of conflict, economic sanctions and under-investment.

(Sourced from gulfnews.com)