Interview with President of
CNPC International Middle East
More than two thousand years ago, Chinese merchant ships sailed across the Persian Gulf along the ancient Silk Road into ancient Mesopotamia, anchoring at the port of Babylon and reaching Baghdad, an important city and a key transportation hub at the time. This ushered in an era characterized by the splendor of both Oriental civilization and Mesopotamian civilization, and continuous economic and trade exchanges between the two sides...
In 2007, Iraq opened its market to foreign investment to advance its plan for higher oil production. In 2008 before the ceasefire, CNPC became the first foreign oil company to enter Iraq to participate in the endeavors to revive the country’s oil industry. After being awarded a service contract for Al-Ahdab Oilfield, we partnered with international counterparts such as BP, Total and Petronas to obtain technical service contracts for major oilfields such as Rumaila and Halfaya...
Overview of CNPC’s Operations in Iraq
CNPC has been very active and outstanding in fulfilling its obligations
and responsibilities, and it is a very trustworthy company.
Ahmad T. A. Berwari, Iraqi Ambassador to China
CNPC is a major participant and a technical service provider in the oil and gas sector in Iraq. It has participated in the investment and operation of four major upstream projects: the Al-Ahdab project in partnership with China North Industries Corp. and SOMO, the Halfaya project in partnership with Total, Petronas and MOC, the Rumaila project in partnership with BP and SOMO, and the West Qurna project in partnership with ExxonMobil, Pertamina, ITOCHU and Oil Exploration Company of Iraq. In addition, the Company also provides services such as oilfield services, engineering construction, mate-rials and equipment, and logistics support.
Located 180 km southeast of Baghdad, near Kut City in Wasit Governorate, and adjacent to the Tigris River
Located in the agricultural region of Wasit with a majority population of Shiite Muslims
Located in Amarah City,
Maysan Governorate, Iraq
Located in Basra Governorate,
Iraq’s largest oilfield in Iraq
Located about 50 km from Basra
Put into operation in June 2011;
Delivered an annual capacity of 6 million tons in November 2011 as required by the contract.
Bid awarded on December 11, 2009;
Contract formally signed on January 27, 2010;
Phase I with a 5-million ton annual capacity put into operation in June 2012; Phase II with a 10-million ton annual capacity put into operation in August 2014, two years ahead of schedule; Construction of Phase III officially launched in April 2017; Phase III with a 20-million ton annual capacity put into operation in September 2018.
Operating right fully transferred to Joint Operation on July 1, 2010;
Initial production target achieved in December 2010;
Technical service contract revised to increase CNPC’s equity from 37% to 46.3733% in September 2014.
Project equity transfer completed with ExxonMobil and CNPC got 25% equity on November, 2013;
CNPC’equity increased to 32.7% in April 2014;
Equity structure changed in May 2018: ExxonMobil—32.7%, CNPC—32.7%, ITOCHU—19.6% Pertamina—10%, Oil Exploration Company of Iraq—5%.
Support for the Development of the Petroleum Industry
CNPC participates in the construction of Iraq’s energy infrastructure by bringing its advantages in integration into full play, and works with its partners to overcome difficulties, so as to help Iraq recover and boost oil and gas production and revitalize the oil industry. These efforts have helped Iraq become a major oil exporting country again and promoted its local economic recovery.
· Restoring and Increasing Production Capacity
· Promoting Local Economic Recovery
· Enhancing Crude Oil Transportation Capability
Projects CNPC has
invested in with its partners
Phase II delivered annual capacity of six million tons three years ahead of schedule
The Halfaya project met the contracted production target of 70,000 barrels/day 15 months ahead of schedule
The Rumaila project achieved the goal of a 10% increase in production two years ahead of schedule and registered the highest production the oilfield had ever seen over the past 30 years
We owe our development in Iraq to the hard work and sincere cooperation of our employees, of which we are very proud. We make unremitting efforts to create more jobs, promote local employment, multicultural integration and overall development of employees, and strive for business growth in harmony with the career development of our employees.
· Localization and Diversity
· Training and Incentives
· Health and Safety
Local employment rate
CNPC has provided jobs for the local people
A Good Neighbor to the Community
We owe our development in Iraq to the support and assistance of all stakeholders in Iraq. Therefore, following the business concept of “Caring for Energy, Caring for You”, we are committed to promoting local economic development and social progress and improving the quality of life of local residents.
We strive to strengthen community communication, promote environmental protection, control environmental impacts, supply clean energy to local residents, and actively promote social welfare such as culture, education and health, in an effort to bring benefits to local people and achieve mutual benefit and common development.
· Strengthening community communication
· Controlling Environmental Impact
· Guaranteeing Local Access to Energy
· Promoting Community Public Welfare
As a major oil and gas producer and oilfield service provider in the world, CNPC has businesses covering oil and gas operations, oilfield services, engineering and construction, equipment manufacturing, financial services and new energy development.
Caring for Energy, Caring for You
To be a first-class integrated international energy company
Resources, Market, Internationalization, Innovation
Win-win cooperation for common development
China national petroleum corporation