Iraqi and Chinese firms to build US$ 320 million oil pipeline

According to official Iraqi sources, China Petroleum Pipeline Engineering Corp. (CPPE) and Iraq's State Company for Oil Projects (SCOP) have secured a contract worth approximately US$ 320 million to build an oil pipeline that links the Missan oilfields to the export terminals in southern Iraq.

The 272 km pipeline linking the oilfields to export terminals in the Gulf will be constructed over 14 months.

Nihad Mousa, a Director General at the Iraqi Oil Ministry, noted that 60 km of the pipeline would be built by SCOP, while CPPE is in charge of the remaining route.

Ms. Mousa state that the new pipeline will link newly developed Halfaya, Buzurkan, Fuka and Abu Ghareb with the export terminals, and replace an existing pipeline incapable of handling increasing production from these fields.

Chinese firms are investing significantly in oilfields in Missan governorate in southern Iraq. PetroChina, a subsidiary of China National Petroleum Corp. (CNPC), is the operator of Halfaya oilfield along with Total SA and Petronas Calgari. CNOOC Ltd, the Hong Kong-listed unit of China National Offshore Oil Corp., is developing along with state-run Turkish Petroleum Corporation, known as TPAO, three other fields in the governorate – Buzurkan, Fuka and Abu Ghareb.

Last year, PetroChina started first production from Halfaya at 100 000 bpd. This number is expected to increase to 200 000 bpd by the end 2013. The remaining three fields are producing more than 100 000 bpd.

Iraq, an OPEC member, is hoping to increase its domestic crude oil production to 3.5 million bpd by the end of this year, from the current figure of 3.2 million bpd. Iraq is also hoping to reach 4.5 million bpd next year.

Edited from various sources by Cecilia Rehn. 

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