Petrochina tenders Iraq engineering service deal

23 February 2012

Chinese firm planning second phase of facilities at Halfaya field

Petrochina, the developer of Iraq’s Halfaya oil field has issued a tender for the provision of general engineering services (GES) for the second phase of its surface facilities at the field in the southern Missan province.

Petrochina has divided the scope of work for the GES contract into seven packages and asked firms to submit bids by 7 February, according to sources close to the project.

The development includes new 100,000 barrel a day (b/d) central crude oil processing facilities (CPFs) and a 220 million cubic feet a day (cf/d) gas processing plant, as well as water supply facilities, a power plant and export and infield pipelines.

The Oil Ministry estimates that the associated gas from the fields contain 0.5 per cent hydrogen sulphide, which will be processed in a dehydration unit and sulphur recovery unit at the plant. 

The contractor will also carry out topographical and geotechnical surveys for the basic design of the packages, prepare tender documents, identify long lead items

Petrochina plans to commission the Phase-2 facilities by the end of 2013. The design period for the packages is approximately five months, although the central processing facilities and gas plant will take up to seven months to complete.

The 4.1 billion barrel oil field is being developed by Petrochina, a subsidiary of state-owned China National Petroleum Corporation (CNPC). It awarded a $162.5m engineering, procurement and construction (EPC) contract to its sister company, China Petroleum Engineering Construction Company (CPECC) last May for work on the first phase of development, including CPF-1.

Petrochina leads a consortium with France’s Total, Malaysia’s Petronas and state-owned South Oil Company (SOC) along with Missan Oil Company (MOC) to increase production to 6 million b/d by 2020, from 2.7 million b/d currently. The group will be paid a remuneration fee of $1.40 per barrel.

Infield pipelines and power cablePipelines from 59 planned wells and 14 well pads to central processing facility (CPF-2). Also includes a 33KV overhead transmission line from power plant to CPF-1, base camp and facilities
Export pipelinesA 24-inch gas pipeline from CPF-2 over 10 kilometres to CPF-1, as well as a 18-inch crude oil pipeline to export station
Gas station expansionExpansion of gas receiving station to 100 million cubic feet a day (cf/d) from 50 million cf/d
CPF-2 and power plantDesign capacity of 100,000 b/d, with possible later expansion to 300,000 b/d. Also includes a 66 megawatt power plant
Gas processing plantDesign capacity of 220 million cf/d
Crude export station and export pipelineCapacity of 200,000 b/d. Also includes a new 42-inch pipeline running from CFP-2 over 122 kilometres to Bin Umar and a new 48-inch pipeline from Bin Umar to the Al-Fao oil depot
Water plantPhase-1 will target supply of 3,000 cubic metres a day (cm/d) of water, with possible expansion to 4,500 cm/d in phase-2. Includes a 6-inch water pipeline and optical cables from CPF-1 to CPF-2
Source: Petrochina

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