CNPC Wins Largest Foreign Contract in Five Years

CNPC Wins Largest Foreign Contract in Five Years

China National Petroleum Corp. (CNPC) acquired 1.4 billion yuan ($194 million) engineering, procurement, and construction contract to drill wells with two rigs in Iraq’s Rumaila oilfield. The number of wells to be drilled in the field is not mentioned in the contract.

CNPC Daqing Drilling Engineering Company first provided its well-drilling service in the Rumaila oilfield in 2010, shortly after PetroChina and bp signed a 20-year service contract with Baghdad to develop the giant oilfield which was known as Basra Energy Company Limited (BECL).

CNPC holds about 48% of (BECL), while bp holds 46% and Iraq Ministry of Oil holds 6% acting as the other stakeholders of Iraqi state-owned Basra Oil Company (BOC) and state-owned oil marketing company Somo.

Rumaila, an oil field in southern Iraq close to Kuwait borders, is considered as one of the world’s most productive oil and gas fields in the world. In 2022, the field produced 1.42 million boe/pd. The field is scheduled to continue production until 2049.

The contract comes as Iraq plans to increase its oil production capacity. In November, the country’s state-owned oil marketer, SOMO Alaa Alyasri, told Reuters that Iraq seeks to produce 7 mbpd in 2027. At the time, Rumaila was outlined as an option for expansion.

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Doaa Ashraf 454 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.

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