Petrochina tenders new Iraq oil pipeline

01 October 2012

Proposed Iraqi export pipeline will run from Burzugan and Halfaya oil fields in eastern Iraq

Petrochina has launched an engineering, procurement, construction and commissioning (EPCC) tender for the construction of a new crude oil export pipeline.

The two-section pipeline will export crude oil from the Burzugan and Halfaya oil fields in the southeast of Iraq to oil storage facilities on the Al-Fao peninsula.

The first section is 125 kilometres long, starting at Junction Point Pigging-Station near the Halfaya field and ending in the Bin Umar area. The second 147km section will run from Bin Umar to Al-Fao. Both 42-inch pipelines will be laid underground.

The tender also calls for 14 block valve stations to be installed along the entire length, as well as communication and control systems. Topographical surveys and basic designs are currently ongoing. Contractor sources estimate the budget value for the scheme to be about $400m.

Tendered by Petrochina, the pipeline will be built jointly with the Oil Ministry, state-owned Missan Oil Company (MOC) and Chinese state-owned firm China National Offshore Oil Company (CNOOC). In July, CNOOC tendered a deal for the pipeline’s material supply.  

Petrochina, a subsidiary of state-owned China National Petroleum Corporation (CNPC), leads the development of the 4.1-billion-barrel Halfaya oil field along with France’s Total, Malaysia’s Petronas and state-owned MOC.

CNOOC, is developing the Missan oil field complex, which contains three fields – Fakka, Abu Ghraib and Burzugan – all along the Iranian border.

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