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China Petroleum Engineering Corporation, the construction arm of a leading Chinese oil and gas company, has secured a $2.5 billion project in Iraq to develop seawater pipelines. The project involves constructing primary pipelines connecting seawater treatment facilities to distribution stations, branching pipelines to oilfield centers, and related ground infrastructure. The construction process is expected to span approximately 54 months.
While the contract is still in the preliminary negotiation stage, there is some uncertainty about its finalization. However, if finalized and executed successfully, this project is projected to significantly boost the company’s profit and revenue over the next four to five years.
This new contract aligns with the company’s strategic shift toward high-end projects and expanding partnerships with international and domestic oil firms as well as global construction companies. Recently, subsidiaries of the company secured two additional contracts valued at $1.6 billion and $294 million from France’s TotalEnergies.
In 2023, international revenue for the company exceeded 23.6 billion yuan (about $3.3 billion), representing 29% of its total income. Last year, international sales were approximately 23.2 billion yuan (about $3.2 billion), constituting around 27% of total revenue. In the first quarter of this year, net profit decreased by nearly 20%, totaling 194 million yuan (roughly $26.9 million), while revenue grew by about 16% to 17.1 billion yuan.
The company offers a wide range of engineering services throughout the entire oil and gas supply chain, including surface engineering for oil and gas fields, refining and chemical engineering, as well as storage and transportation solutions.
Shares of the company slipped slightly, falling 0.3% to 3.39 yuan (around 47 US cents) during trading today in Shanghai.
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