Chinese consortium signs 412 mln USD contract to build gas processing facility in Iraq

China CAMC Engineering Co., Ltd. (CAMCE, 002051. SZ) announced on Wednesday that a consortium formed by CAMCE and CNOOC Petrochemical Engineering Co., Ltd. has recently signed a contract with Kuwait Energy Basra Co., Ltd. to build central processing facility of a gas treatment system project in Iraq, reported China Securities Journal.

Worth 412 million U.S. dollars, the project contributes 30.27 percent of CAMCE's 2021 operating revenue. The project is expected to benefit the company's performance in the next three years, expanding CAMCE's market share in the petrochemical sector of Belt and Road countries.

The general contract includes engineering, procurement, construction and commissioning of a gas processing facility in the north part of Iraq's Basra, covering a land area of 865 square kilometers.

As the leading party, CAMCE takes up 97 percent in the share of the consortium, taking charge of engineering, project management, procurement, construction, commissioning and general delivery, whereas CNOOC Petrochemical Engineering Co., Ltd. shares part of the engineering work and provides relevant technical support.

Earlier in January this year, a consortium formed by the same two companies signed a contract for building central processing facility of a crude oil treatment system project in Iraq. The project is now under smooth progress.