Iraq awards Petrofac, China’s CPECC Rumaila oilfield contracts

A general view shows the North Rumaila oilfield in the southern city of Basra. (File photo: Reuters)

Iraq’s cabinet said on Tuesday it had approved two major energy contracts for its Rumaila oilfield project worth around $960.8 million.

It approved a $535.8 million contract with British oil service firm Petrofac to submit projects management services for the supergiant Rumaila, which pumps more than a third of Iraq’s total output of over 3 million barrels per day (bpd).

China Petroleum Engineering & Construction Corporation (CPECC) has also won a $425 million service contract to handle engineering, procurement, construction and commissioning work for a power station at Rumaila.

Rumaila, the workhorse of Iraq’s oil industry with 17 billion barrels in reserves, is being developed by British oil major BP and Chinese partner CNPC.

Baghdad has signed a series of contracts with foreign oil companies that target total oil production capacity of 9 million barrels per day by 2020 - up from over 3 million bpd.

Last Update: Wednesday, 20 May 2020 KSA 09:43 - GMT 06:43