CPEC's subsidiary signs a $2.524 billion contract for the Iraq seawater pipeline project
CPEC's wholly-owned subsidiary signed a USD 2.524 billion EPC contract for a seawater pipeline project with Iraq's Basra Oil Company, with a contract duration of 54 months. This contract is expected to have a positive impact on operating revenue and profit over the next 4-5 years, but it will not have a significant impact on the total assets, net assets, and net profit for this fiscal year
According to the Zhitong Finance APP, China Petroleum Engineering (600339.SH) announced that its wholly-owned subsidiary, China Petroleum Pipeline Engineering Co., Ltd. (referred to as "Pipeline Engineering Company"), recently signed an EPC contract with Iraq's Basra Oil Company (referred to as "BOC") for the total package project of seawater transmission pipeline in Basra Province, Iraq (referred to as "Iraq Seawater Pipeline Project"). The contract amount is USD 2.524 billion (approximately RMB 18.032 billion based on the exchange rate on the project award date). The project contract period is 54 months (42 months for design, procurement, construction, and trial operation phase + 12 months for operation, maintenance, and training phase).
The performance of this contract will not have a significant impact on the company's total assets, net assets, and net profit for this year. Due to the long contract performance period, the implementation of this contract will have a certain positive impact on the company's operating income and total profit over the next 4-5 years
