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Canadian engineering giant SNC-Lavalin Group says it has won a contract to provide design, purchasing and other services on a major energy expansion project in Arctic Russia.

The Montreal company said Wednesday it had been selected by Globalstroy-Engineering as the prime sub-contractor for detailed engineering and procurement for Phase III Package 4 of the Kharyaga oilfield project.

SNC-Lavalin will also provide project management support and commissioning services, the company said.

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Financial details of the contract were not revealed.

The Kharyaga oilfield lies in the Nenets Autonomous Territory in Russia's oil-rich Timan-Pechora province in Russia's Arctic region.

Phase III involves developing additional reserves, sustaining a daily output of 30,000 barrels a day, achieving 95 per cent associated gas use and eliminating flaring.

The work, which will be carried out over a 23-month period, has already begun and will be handled in the Canadian company's London and Moscow offices and at its partially owned Russian design institute OAO Vnipineft in Moscow.

"We have been active in Russia and the former Soviet Union for many years, and have great confidence in this market," said Jean Beaudoin, executive vice-president of SNC-Lavalin.

"We are particularly pleased that we can benefit from Vnipineft's knowledge and experience on this challenging project."

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