The Australian construction group Leighton has fired a top official on its oil export project in Iraq over contractual irregularities.
The company is building oil export infrastructure near the Iraqi port of Basra through its Leighton Offshore unit, which has become embroiled in a government investigation over alleged tendering violations.
"[The] internal review of the Iraq projects undertaken by its subsidiary, Leighton Offshore, has identified instances of failures to meet governance standards in respect of the proper documentation of contractual arrangements. As a consequence, a senior manager has been dismissed," said Leighton.
In 2010, Leighton won a contract worth US$733 million (Dh2.69 billion) to construct three moorings and lay 120 kilometres of pipeline for Iraq's South Oil Company at the Fao terminal near Basra. A year later, it secured two more contracts worth $597m for further mooring facilities, pipelines and offshore platforms.
In March, Iraq's oil ministry said it had launched an investigation into the tendering process, after suspicions that Leighton had received advance information about the bids submitted by competitors, allowing it to table the lowest price.
"We are currently examining all measures concerning the contracts signed with Leighton," Hilal Ismail, the oil ministry's inspector general, said at the time.
The Basra project is part of Iraq's effort to raise its export capacity to accommodate rising production.
Crude production surpassed 3 million barrels per day (bpd) earlier in the year, and even though ambitious targets of 12 million bpd now seem unlikely, output will continue to climb.
The first two moorings were inaugurated in February, adding about 900,000 bpd in export capacity. When both phases of the project are completed, export capacity at the Fao terminal will be boosted by 1.8 million bpd.
Iraq has no seaborne outlets other than Basra, and the Kirkuk oil terminal in the north is not connected to the southern mega-fields that account for the bulk of Iraq's output.
Leighton has a big regional footprint and in the UAE formed a joint venture with the local contractor Al Habtoor in 2007. Its projects in the Emirates include the Sorbonne University in Abu Dhabi, and the long-delayed Pearl Hotel complex at the foot of the Palm Jumeirah in Dubai.
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Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Emiratisation at work
Emiratisation was introduced in the UAE more than 10 years ago
It aims to boost the number of citizens in the workforce particularly in the private sector.
Growing the number of Emiratis in the workplace will help the UAE reduce dependence on overseas workers
The Cabinet in December last year, approved a national fund for Emirati jobseekers and guaranteed citizens working in the private sector a comparable pension
President Sheikh Khalifa has described Emiratisation as “a true measure for success”.
During the UAE’s 48th National Day, Sheikh Khalifa named education, entrepreneurship, Emiratisation and space travel among cornerstones of national development
More than 80 per cent of Emiratis work in the federal or local government as per 2017 statistics
The Emiratisation programme includes the creation of 20,000 new jobs for UAE citizens
UAE citizens will be given priority in managerial positions in the government sphere
The purpose is to raise the contribution of UAE nationals in the job market and create a diverse workforce of citizens
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Greg Lukianoff and Jonathan Haidt, Penguin Randomhouse
The National photo project
Chris Whiteoak, a photographer at The National, spent months taking some of Jacqui Allan's props around the UAE, positioning them perfectly in front of some of the country's most recognisable landmarks. He placed a pirate on Kite Beach, in front of the Burj Al Arab, the Cheshire Cat from Alice in Wonderland at the Burj Khalifa, and brought one of Allan's snails (Freddie, which represents her grandfather) to the Dubai Frame. In Abu Dhabi, a dinosaur went to Al Ain's Jebel Hafeet. And a flamingo was taken all the way to the Hatta Mountains. This special project suitably brings to life the quirky nature of Allan's prop shop (and Allan herself!).
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now