[Haichuan Overseas Engineering] CNPC Engineering wins contract for $294 million Iraq gas pipeline project

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CPECC wins bid for Iraq’s gas pipeline project On June 5, 2025, China Petroleum Engineering Corporation (CPECC) issued a statement stating that its wholly-owned subsidiary, China National Petroleum Pipeline Engineering Co., Ltd., had recently received a bid award from TotalEnergies for the EPSCC project related to the midstream gas pipelines in Iraq’s Atawi oil field. The contract value for this project is approximately 294 million US dollars (about 2.122 billion RMB), with a planned completion time of 36 months. It represents another significant achievement for CPECC in the Middle East’s oil and gas storage and transportation project market. I. Project Overview The Atavi GMP project is located west of Basra in Iraq, and it involves the construction of pipeline networks from the Majnoon oil field and West Qurna-2 oil field to the newly built Latavi gas processing plant. The project includes approximately 114 kilometers of 26-inch acid pipelines, 83 kilometers of 20-inch acid pipelines, as well as three additional export pipelines and associated station valve rooms. The project is expected to achieve provisional acceptance within 36 months, and upon completion it will significantly enhance the natural gas transmission capacity of Iraq’s oil fields, contributing to the upgrade of the local energy infrastructure. Moreover, CPECC’s regional influence: As a key subsidiary of China National Petroleum Corporation (CNPC), CPECC has, thanks to its extensive experience in oil and gas storage and transportation as well as its excellent project management capabilities, become a leading player in the EPC market in the Middle East. In recent years, CPECC has performed particularly well in the Iraqi market. For example, its subsidiary China Petroleum Engineering Construction Company (CPECC) previously won the bid for the EPSCC project at the Atawi oil field, with a contract value of 1.601 billion US dollars (approximately 11.538 billion yuan) and a duration of 39 months, setting a new record for the largest single contract value it has secured in the Iraqi market. This project forms a upstream-downstream linkage with the Atavi GMP project, further strengthening CPECC’s presence across the entire value chain in Iraq’s oil and gas industry. In addition, CPECC has also made significant progress in the UAE market. In August 2024, CPECC won bids for Sections 2 and 3 of the West-East Pipeline Project in the UAE, with a total contract value of around $480 million (approximately 3.4 billion RMB), marking a significant breakthrough for the company in the field of long-distance pipelines in the UAE. Previously, CPECC has also undertaken the new crude oil processing facility project at the Rumaila oil field in Iraq (with a contract value of $386 million), as well as the PMC project for the West Qurna-1 oil field, demonstrating its competitive strength in high-end oil and gas services. II. Project Impact and Prospects The successful bidding for the Atavi GMP project is expected to generate approximately $294 million in revenue for CPECC, and it will have a positive impact on the company’s operating income and total profits over the next 3–4 years. The Pipeline Bureau Engineering Company possesses extensive experience in the construction of oil and gas storage and transportation projects as well as in the implementation of projects in Iraq, and its existing technologies and resources are fully capable of meeting the requirements of such projects. The company will ensure the safe and efficient operation of the project through comprehensive risk management. The Middle East is an important source of China’s oil imports; in 2022, crude oil imported from the Middle East accounted for 53.5% of China’s total oil imports, with Iraq ranking as the third largest supplier of crude oil to China. In recent years, CPECC has continued to deepen its energy cooperation with the Middle East** by undertaking multiple high-value projects. The implementation of the Atawi GMP project not only enhanced CPECC’s competitiveness in the Iraqi market but also laid a solid foundation for its long-term development in the Middle East.