Chinese contractor wins Iraq upstream contract

14 August 2023

The drilling subsidiary of state-owned China National Petroleum Corporation (CNPC) has won an engineering, procurement and construction (EPC) contract worth $194m to execute a project at Iraq’s Rumaila field.

In a statement, CNPC Daqing Drilling Engineering Company said it was the biggest overseas contract the company has won in the past five years.

The scope of the contract includes drilling wells with two rigs at the Rumaila field.

CNPC Daqing Drilling Engineering Company did not state the number of wells it is contracted to drill.

A joint venture of UK energy producer BP and PetroChina, the listed arm of CNPC, operates the Rumaila field.

The name of the joint venture is Basra Energy Company (BEC).

Along with PetroChina and BP, Iraqi state-owned Basra Oil Company (BOC) and state-owned oil marketing company Somo are also shareholders of BEC.

CNPC Daqing Drilling Engineering Company first provided its well-drilling service at the Rumaila oil field in 2010, shortly after PetroChina and BP signed a 20-year service contract with Baghdad to develop the giant field.

Last month, MEED revealed that the project to develop new crude oil processing facilities at Iraq’s Rumaila oil field is nearly 50 per cent complete.

In October last year, MEED reported that China Petroleum Engineering & Construction Corporation (CPECC) had signed a contract to design, procure, construct and test the new crude oil processing facilities.

The contract was valued at about $386m and construction was expected to take three years to complete.

The scope of work includes developing two new oil trains, each with a capacity of 120,000 barrels a day (b/d).

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Wil Crisp
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