China’s CPECC Wins $548m Halfaya Contract

By John Lee.

Reuters reports that the China Petroleum Engineering & Construction Corporation (CPECC), the engineering and construction subsidiary of the China National Petroleum Corporation (CNPC), has won a $548-million service contract to develop the Halfaya oilfield.

The company will handle engineering, procurement, construction and commissioning work at the oilfield, which is forecast to produce 535,000 bpd in 2017.

CNPC has a 37.5 percent stake in Halfaya, with 25 percent hel d by Iraqi’s South Oil Company, 18.75 percent by Malaysia’s Petronas and another 18.75 by French giant Total. Under the terms of their contract, signed in 2010, they receive a fee of $1.40 per barrel.

State-owned China National Petroleum Corp said last year the first phase of the Halfaya field had started operating and had a production capacity of 100,000 barrels per day.

(Source: Reuters)

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