Tag Archive | "CPECC"

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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Petrofac Updates on Iraqi Operations


By John Lee.

In its final results for the year ended 31st December 2012, oil and gas service provider Petrofac issued the following updates on its operations in Iraq:

Badra oilfield development project, Iraq

In February 2012, we were awarded a US$330 million lump-sum EPC contract by Gazprom for the first phase of the Badra oilfield development project. We are providing detailed design, engineering, procurement, construction, pre-commissioning, commissioning and start-up work on the Badra development’s central processing facility, which comprises three crude oil processing trains. The first phase of the project is expected to come on stream in the second half of 2013, with final completion scheduled during the second half of 2015.

Inspection, maintenance and repair contract, Iraq

In November 2012, we won a further inspection, maintenance and repair contract for the Rumaila oil field in southern Iraq with our joint venture partner, China Petroleum Engineering & Construction Corporation (CPECC). The US$229 million contract was awarded by BP Iraq NV (BP), via the Rumaila Operating Organisation (ROO), following a competitive tender. The three-year contract, which is worth more than US$160 million to Petrofac, covers the inspection, maintenance and repair of degassing stations, rotating machinery and cluster pumping stations and came into effect on 1 November 2012.

Offshore operations contract, Iraq

In August 2012, we secured a contract worth approximately US$100 million to provide offshore operations and maintenance services for the Iraq Crude Oil Expansion Project. Awarded by Iraq’s South Oil Company (SOC), the 12-month contract commenced following a three-month mobilisation period. There is also additional scope for the contract to be extended via two one-year contract extension options. Offshore Projects & Operations will provide operations and maintenance services for the new oil export facilities situated approximately 60 kilometres offshore the Al Fao Peninsula in southern Iraq. The facilities include: an offshore platform, metering station, single point moorings, subsea pipelines and tanker operations.

(Source: Petrofac)

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Petrofac JV Wins $229m Contract at Rumaila


By John Lee.

Petrofac has won a further inspection, maintenance and repair contract for the Rumaila oil field in Southern Iraq with its joint venture partner, China Petroleum Engineering & Construction Corporation (CPECC). The US$229 million contract was awarded by BP Iraq NV (BP), via the Rumaila Operating Organisation (ROO), following a competitive tender.

The three-year contract, which is worth more than US$160 million to Petrofac, will be led by its Offshore Projects & Operations (OPO) business. The contract covers the inspection, maintenance and repair of degassing stations, rotating machinery and cluster pumping stations and came into effect on 1 November 2012.

Marwan Chedid (pictured), Chief Executive of Petrofac’s Engineering, Construction, Operations & Maintenance (ECOM) division, commented:

We are delighted to have been awarded a further contract for the Rumaila field. This award is testament to Petrofac’s ability to deliver to a high standard in Iraq and builds on the success we have achieved over the past year in this field. Alongside our partner CPECC, we look forward to developing further our relationship with BP Iraq and the Rumaila Operating Organisation and helping to ensure a safe and successful future for this flagship field.

(Source: Petrofac)

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China to Drill 30 New Wells at Halfaya by End-2012


The head of the state-run Missan Oil Company, Ali Maarij, has said that the China Petroleum Engineering & Construction Corporation (CPECC), the engineering and construction subsidiary of the China National Petroleum Company (CNPC), has drilled 13 new wells at the Halfaya oil field, and plans to drill 17 more by the end of the year, according to the Azzaman news agency.

With reserves estimated at 15 billion barrels of oil, in addition to significant gas reserves, Halfaya is one of Iraq’s largest oil fields. It is being developed by CNPC, France’s Total, and Malaysia’s Petronas, under a deal that gives them $1.40 per barrel.

CPECC won the $174 million contract last year to build ‘crude processors’ and dig new wells as part of the overall strategy by the Halfaya partners to eventually boost output to more than 500,000 bpd. Some of the new wells reportedly produce as much as 5,000 bpd.

Maarij said Halfaya was expected to add more than 70,000 bpd to national output by the end of 2012.

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Following Iraqi Success, Petrofac and CPECC form JV


Petrofac, the international oil & gas facilities service provider, and China Petroleum Engineering & Construction Corporation (CPECC), the engineering and construction subsidiary of China National Petroleum Company (CNPC), have established a new strategic joint venture, China Petroleum Petrofac Engineering Services (CPPES). Based in Sharjah, UAE, the joint venture will provide project management and engineering services for selected oil & gas projects, focusing on projects for Chinese oil & gas companies.

Petrofac and CPECC have a long-standing relationship and track record of cooperation, most recently being jointly awarded an inspection, maintenance and repair contract for the Rumaila oil field in Southern Iraq. The strengthened relationship was recognised at an official ceremony that took place at CPECC’s offices in Beijing on 19 September.

The joint venture which is 51% owned by CPECC and 49% owned by Petrofac, following formal signing and exchanging of contracts, will be established under the leadership of personnel from both companies.

Maroun Semaan, group chief operating officer, Petrofac, commented:

Cementing our association with CPECC represents a significant milestone for Petrofac. Our relationship with CPECC extends over the last seven years and I am delighted it has been strengthened with the creation of this joint venture. Together, we have considerable resources and world-class engineering and construction expertise and our collaboration should enable us to capitalise on the significant opportunities in China and internationally.

Mr Hou Haojie, President, CPECC, commented:

It is a delight that CPECC and Petrofac have come together to combine and harness their respective talents in order to deepen the portfolio in our local and international markets.

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Petrofac Wins $90m Contract at Rumaila


Update, RBC Capital Markets opinion: albeit the size of the contract is not material compared to Petrofac’s backlog, we believe that any positive developments from Iraq should be seen as a positive step for Petrofac. This region becomes increasingly strategic, especially for the newly created Integrated Energy Services (IES). This contract award follows the EPC for the early production facility of the Shell-operated Majnoon field ($240m in March) demonstrating PFC’s ability to build a presence in the country.

Petrofac, the international oil & gas facilities service provider, announces that BP Iraq NV (BP) has awarded Petrofac and its joint venture partner, China Petroleum Engineering & Construction Corporation (CPECC), an inspection, maintenance and repair contract worth US$90 million for the Rumaila oil field in Southern Iraq.

Petrofac’s Offshore Engineering & Operations (OE&O) business will lead the one-year contract, which is effective from 28 June 2011, and is worth US$63 million to the group. Work will commence following a short transition and the scope of the contract covers rotating machinery, degassing stations and cluster stations. The project is being undertaken in partnership with CPECC, a company which has well established operations and infrastructure in Iraq. As part of the agreement Petrofac’s staff will be based at CPECC’s accommodation facilities in Rumaila.

Commenting on the award, Petrofac’s group chief operating officer, Maroun Semaan, said: “We continue to be focused on our ongoing activities in Iraq and this most recent contract win demonstrates our strategic intent to grow the breadth and depth of our service delivery within the country. It also provides an excellent opportunity for us to establish closer relations with the BP Iraq team and to continue to develop our own in-country knowledge and presence.”

Bill Dunnett, managing director, Petrofac OE&O added:

We’re delighted to be able to continue to support our existing customer, BP, in its onshore operations and to build on our relationship which started in the UK North Sea and developed more recently when we took over the operatorship of the Sajaa asset in Sharjah earlier this year. This contract will be run from our operating centre in Sharjah and we hope it will further establish our capability both in the country and the region to maximise any future opportunities.

The Rumaila oil field, discovered by BP in 1953, is located in Southern Iraq, 32km from the country’s border with Kuwait.

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Chinese Company Wins $174m Halfaya Contract


The China National Petroleum Corporation (CNPC) and its partners in the southern Halfaya oilfield have awarded a $174 million contract to the China Petroleum and Engineering Corp. (CPECC) to build three crude processors, an Iraqi oil official told Reuters on Sunday.

Ali Maarij, head of Iraq’s state-run Missan Oil Company said the new plants will raise the production capacity of Halfaya field by 100,000 barrels per day.

Halfaya field currently produces around 12,000 bpd and plans to hit 20,000 bpd by the end of this year. Production of around 90,000 bpd is expected to be achieved in the first quarter of 2012, Maarij said.

(Source: Guardian)

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PetroChina Invites 7 Contractors to Bid for Halfaya


PetroChina has invited seven contractors to submit the bidding documents for engineering, procurement and construction work on the first phase of development at the Halfaya oilfield in Iraq in the first week of 2011, the Norway-based energy newspaper Upstream has reported.

The report said the companies invited to participate in the tender include the UK-listed Petrofac, France’s Technip, CH2M Hill of the U.S., China Petroleum Engineering Construction Company (CPECC), Daqing Engineering & Construction of China, and Malaysia’s KNM and Malaysia Marine & Heavy Engineering.

According to the report, CPECC could have an upper hand over other bidders thanks to its status as PetroChina’s sister company under the umbrella of China National Petroleum Corporation (CNPC).

Under the development and production service contract signed with Missan Oil Company in January of 2010, a PetroChina-led consortium aims to kick off production of 70,000 barrels per day from Halfaya in its first phase of commercial production.

PetroChina 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.

(Source: istock Analyst)

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