China Petroleum Engineering and Construction Company (CPECC), a subsidiary of China National Petroleum Corporation (CNPC), has won a contract worth US$386m for the engineering, procurement, construction, and commissioning of two sets of crude oil processing facilities at the Rumaila oilfield in southern Iraq, each with a capacity of 120,000 bpd.
The contract, awarded by the oil and gas investment company Basra Energy (a joint venture between BP Holdings Iraq, 51%, and PetroChina International Iraq, 49%), is scheduled to take effect on 16 November 2022. Construction of the facilities is expected to take 36 months. The Rumaila oilfield has reserves estimated at 2.3 Gt and produces about 75 Mt/year of oil (1.5 mb/d).
Iraq has proven crude oil reserves reaching 20 Gt, ranking third worldwide for conventional oil reserves. Oil production reached 203 Mt in 2021.