China Petroleum Engineering Co. (CPECC) has announced that its wholly-owned subsidiary, China Petroleum Pipeline Engineering Co. (CPPE) has been awarded a major contract by Iraq’s Basra Oil Company (BOC) for the Basra Province Seawater Transmission Pipeline EPC Project.
The project, valued at $2.524 billion, includes the construction of trunk and branch pipelines to deliver seawater from treatment facilities to various oilfields across Basra. It also involves above-ground pipeline infrastructure.
The project is currently in the “bid awarded, pending contract signing” phase, with a total implementation period of 54 months, broken down as follows:
- 42 months for design, procurement, construction, and trial operation
- 12 months for operation, maintenance, and training
According to the company statement, if formally signed and successfully implemented, the project is expected to significantly boost the company’s revenue and profits over the next 4-5 years. It would also strengthen the company’s footprint in Iraq and the broader Middle East oil and gas pipeline market.
The company cautioned that uncertainties remain, including potential risks related to the political, economic, and financial environment in Iraq. Investors are advised to monitor updates and remain aware of associated risks.
Click here to read the original company announcement (Chinese).
(Source: Shanghai Stock Exchange)
