China National Petroleum Corporation (CNPC) said on Thursday that its wholly-owned subsidiary China Petroleum Engineering Construction Co (CPECC) in consortium with Italy’s PEG Engineering & Contracting DMCC has been awarded a $690 million contract by Eni Iraq for the expansion of Zubair Mishrif degassing station, located in the Zubair Oilfield in Iraq. 

CNPC said in a stock exchange statement that the duration of the Engineering, Procurement and Construction (EPC) contract is 31 months starting from 31 October. 

The statement issued in Chinese said the degassing station will comprise of four crude oil processing trains (each with a processing capacity of 50,000 barrels/day); 4 produced water treatment rows (each row with a processing capacity of 66,000 barrels/day), 1 water injection pumping station (750,000 barrels/day) and auxiliary facilities, storage tanks and other supporting facilities. 

It said the agreement also includes a 12-month Operation & Maintenance (O&M) period within a 24-month warranty period. 

Eni owns 41.56 percent of the international consortium developing Zubair Field Development Project with Kogas owning 23.75 percent, BOC 29.69 percent and State Partner 5 percent. 

(Writing by SA Kader; Editing by Anoop Menon) 

(anoop.menon@refinitiv.com) 

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