CPECC awarded $190m oil contract in Iraq
7 January 2026
Chinese contractor China Petroleum Engineering & Construction Company (CPECC) has been awarded a contract worth about $190m for a project at Iraq’s Rumaila field, according to industry sources.
The contract was awarded under the engineering, procurement, construction and commissioning (EPCC) model and focuses on developing a free water removal facility at a degassing station in the northern part of the field.
The new facility to be developed under the contract will be named DS04 FWKO.
Led by Basra Energy, a joint venture of China National Petroleum Corporation (CNPC) and UK-headquartered BP, the project aims to address the rising water content in crude oil at the Rumaila oil field and ensure the stable operation of existing equipment at the DS04 degassing station.
The project aims to maintain a total crude oil processing capacity of 323,000 barrels a day.
The contract period for this project is 36 months.
The scope of the project includes the construction of a new free water separation and produced water treatment system, along with supporting facilities and infrastructure.
Under the terms of the contract, CPECC will carry out:
- Detailed design
- Partial procurement
- Construction
- Commissioning
- Start-up
- Performance testing
CPECC will also provide a two-year warranty, training, and operation and maintenance support.
The contract award took 41 months from bid submission to contract signing.
In a statement, CPECC said its Middle East subsidiary faced a “complex external environment and many uncertainties”.
The company added that its subsidiary “adhered to the concept of ‘market-oriented and customer-centric’, made scientific judgments and took the initiative to overcome difficulties”.
It said: “After multiple rounds of technical and commercial clarifications, it stood out among many international contractors.”
Since entering the Iraqi market in 2010, CPECC’s Middle East subsidiary has been deeply involved in the local energy engineering sector.
In the Rumaila region, it has provided oil and gas engineering services to six clients, including BP, Shell, Eni and Total.
Its services cover the Rumaila oil field, the BGC market, the Majnu oil field, the Zubair oil field, the Attawi oil field and the Basra refinery, among others.
It has signed 96 contracts and completed several benchmark projects with high quality, including early-stage RPP power plants and desalination-dehydration projects.
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The bid submission deadline is 26 February.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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Chinese firm wins Ceer automotive supplier park deal
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