Daewoo Engineering and Construction, one of South Korea’s largest builders, said Monday it won a $545.8 million degassing station project in Iraq.

The contract is part of the larger Zubair DGS project underway some 20 kilometers from Basra.

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

The project, broken up into North, Center and South projects, was commissioned by ENI Iraq Bv, a consortium made up of energy companies such as ENI, Occidental, Missan Oil Company and Korea Gas Corp. Daewoo E&C won the South part of the project.

When the work is completed, the Zubair Oil Field will be able to churn out 850,000 barrels per day, up from 195,000 barrels at present.

“The projects aim to upgrade dilapidated oil production facilities at the oil field,” a company official said.

The builder said its portion of the project will start around June and take about 30 months.

The latest order brings the total amount of overseas contracts for the company so far in 2014 to over $3.22 billion. (Yonhap)