Sinopec subsidiary wins $359m Iraqi oilfield service contract

Sinopec International Petroleum Services Corporation, a subsidiary of Sinopec Oilfield Service Corporation, has formally signed a fixed-price contract with TotalEnergies Latavi Project Company. The contract, valued at $359,118,182, is for the design, procurement, supply, construction, and commissioning of the Phase II Well Site and Interwell Pipeline Project in Iraq's Latifiya oil region. This amount represents approximately 3.15% of the company's operating revenues for 2024.

The project, an EPSCC contract with a 41-month construction period, involves 5 new production and reinjection well sites, the transformation of 11 old well sites, and 44 gathering and transportation pipelines totaling 140 kilometers, along with supporting optical cables. Mechanical completion is expected by March 31, 2029.

While the contract's performance is not expected to significantly impact the company's total assets, net assets, or net profit for 2025, it is projected to have a positive impact on operating revenue and total profit over the next 3 to 4 years. Investors are advised to consider potential investment risks, including force majeure and unforeseen market factors.