Petrochina tenders Iraq pipeline construction deal

11 September 2012

The line will connect Halfaya oil field with Al-Fao storage facility

Petrochina has issued a tender for the engineering, procurement, construction and commissioning (EPCC) of a crude oil export pipeline from the Halfaya oil field in the southeast of Iraq.

International engineering and construction firms have been asked to submit technical proposals by 17 October for the project, known as the Missan crude oil export pipeline (MOEP) project. Documents are available for a fee of $5,000. The planned 42-inch pipeline will run approximately 289-kilometres from Halfaya to the Al-Fao storage depot.

This is a separate tender to another planned pipeline, which is yet to be launched and will connect the second phase central processing facility at the Halfaya field with the Bin Umar storage depot, carrying some 200,000 barrels of oil a day (b/d).

The 4.1-billion-barrel oil field is being developed by Petrochina, a subsidiary of state-owned China National Petroleum Corporation (CNPC). It 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 a barrel.

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