Sinopec subsidiary lands $359m Iraq oilfield engineering contract

Sinopec Oilfield Service Corp announced that its wholly-owned subsidiary, Sinopec International Petroleum Engineering Corporation (SIPEC), has signed a fixed-price turnkey contract with Total Energies EP RATAWI Hub SAS. The contract is for the second phase of the Ratawi oilfield’s well pads and inter-well pipelines in Iraq.

The contract, known as the NWP project, is valued at $359,118,182. This substantial contract represents about 3.15% of the company's 2024 operating income under China's accounting standards. The EPSCC contract has a 41-month duration, aiming for mechanical completion by March 31, 2029. It encompasses five new production and injection well pads, the upgrade of 11 existing well pads, and approximately 140 kilometers of gathering pipelines.

While not expected to materially impact 2025 financial performance, the long-term nature of the contract is projected to positively contribute to the company's operating revenue and net profit over the next three to four years. The company cautions investors about potential risks, including unforeseen economic, political, market, or force majeure factors that could affect contract performance.