Sinopec Engineering subsidiary lands $2.5bn Iraq pipeline contract

China Petroleum Engineering Corporation (Sinopec Engineering) announced that its wholly-owned subsidiary, China Petroleum Pipeline Engineering Co., Ltd. (CPP), has formally signed an EPC contract with Iraq's Basra Oil Company (BOC) for the Iraq Seawater Conveyance Pipeline Project. The contract is valued at $2.524 billion and encompasses the construction of seawater treatment facilities, main pipelines to various tie-in stations, branch pipelines to oilfield distribution stations, and associated ground facilities.

The project has a total contract period of 54 months, comprising 42 months for design, procurement, construction, and trial operation, plus 12 months for operation and maintenance training. While the contract's fulfillment is not expected to materially impact Sinopec Engineering's current year's assets, net assets, or net profit, it is projected to positively contribute to the company's operating revenue and profit over the next 4-5 years.

CPP brings extensive experience in oil and gas storage and transportation engineering, including successful project execution in Iraq, ensuring the necessary technical and resource capabilities for this venture. The company will implement robust risk management to ensure timely and high-quality project completion, though potential market, economic, political, or force majeure factors could affect contract performance.