Recon Wins Contract at Garraf Oilfield

China's Recon Technology has announced that it has signed a $2.8-million engineering and construction service subcontract with Grand Energy Development Limited on a heavy oil transportation system project (the "Project") at the Garraf oilfield in Iraq for the services that Recon has provided.

Pursuant to the subcontract, Recon shall carry out all the engineering design services, provide the technical support to the procurement, construction, commissioning activities and provide the training services of the heavy oil transportation system project.

Garraf oilfield is located in the province of Thi Qar, Iraq, approximately 5km north-west of Al-Refaei city and 85km north of Nasiriya city. The oilfield is 17.5km long and 5.5km wide. It is estimated to hold 1.3 billion barrels of oil reserves.

Based on the Final Development Plan approved by the Government of Iraq in 2018, the oilfield is undergoing further development in stages to achieve crude oil production of 230,000 barrels per day by the end of 2020.

As part of the Project, the heavy oil pipeline with a total intended capacity of 275,000 barrels per day will be built to support the Garraf production target. By providing the services under the Project, Recon has played an important role in building the heavy oil pipeline.

Shenping Yin, co-founder and CEO of Recon said:

"With advanced technique and wide experiences in the automation and digitalization of oil and gas industry, Recon has a relatively competitive advantage in the engineering design and construction businesses in oilfield segment.

"With the successful completion of the project, we expect to construct more oilfield projects and hope to help more oilfields reduce costs and maintain yields at a healthy level in the near future."

Recon Technology, Ltd. (RCON) is China's first non-state-owned oil and gas field service company listed on NASDAQ.

(Source: Recon)

Medical Aid Arrives in Baghdad from China

By John Lee.

A third batch of medical aid from China arrived on Monday in Baghdad.

It includes medical protective equipment such as protective clothing, masks and gloves.

(Sources: Ministry for Health, CGTN)

Rockets strike near Chinese oil site in Iraq

By John Lee.

Two rockets have reportedly struck near a Chinese oil facility south of Baghdad on Saturday.

According to AP, there were no casualties.

It cites an Iraqi army statement saying the rockets struck near a Chinese company in the Nahrawan area, and speculates that the company involved is ZhenHua, a subsidiary of the arms manufacturer Norinco, which has been working in the nearby East Baghdad oil field.

(Source: AP)

CPECC wins $204m Contract at Majnoon

By John Lee.

The China Petroleum Engineering & Construction Corp (CPECC) has reportedly won a $203.5 million engineering contract to treat sour gas at the Majnoon oilfield in Iraq.

According to Reuters, the field is now producing around 240,000 barrels per day (bpd), with plans to boost output to 450,000 bpd in 2021.

Originally awarded to Shell (45%), Petronas (30%) and the Maysan Oil Company (25%) in 2009, the field was taken over by the state-owned Basra Oil Company (BOC) at the end of June 2018, with operations and maintenance contracted to Chinese company Anton Oilfield Services Group (Antonoil) and the US company KBR.

(Source: Reuters)

Anton Oilfield Services Targets Expansion in Iraq

By John Lee.

China's Anton Oilfield Services (AntonOil) has reported that the Group has received written confirmation from its Iraqi customer in advance that it will automatically renew the 2-year contract after its expiry on July 1, 2020 for one year.

In its unaudited interim results for the one year ended 31 December 2019, it added:

"The Group is confident to rely on quality management to continue to create value for customers and strive to provide long-term and continuous management services for the oilfield. In addition, the Group will make every effort to expand towards the markets of other international oil companies in Iraq, actively seek cooperation opportunities with more international oil companies."

It said that its large-scale integrated oilfield management project in Iraq has been running smoothly for one and a half years, and:

"in 2019, the Company obtained a total of approximately RMB2,137.2 million of new orders in the Iraqi market, an increase of approximately 22.8% compared to RMB1,740.5 million in the same period last year; the Company recorded revenue of approximately RMB1419.8 million, an increase of approximately 21.3% from the RMB1,170.6 million in the same period last year."

The company is involved in the development of the Majnoon Oil Field in Basra.

(Source: Anton Oilfield Services)

Iraq to Evacuate Citizens from Wuhan, China

By John Lee.

Following the spread of coronavirus in China, the Iraqi government has provided a special Iraqi Airways airplane with medical staff to evacuate students and the community residing in Wuhan, China, to Baghdad.

Foreign Minister Alhakim has directed the Embassy of the Republic of Iraq to China to form an operations room headed by the Ambassador, and the membership of the cultural attaché which started its duties immediately after its formation, to keep count of the numbers of the Iraqi community in Wuhan, and prepared a note to the office of the Chinese Foreign Ministry in the city where the Iraqi students reside to allow them to leave the city, and the embassy opened hotlines available throughout the day for the Iraqi community, as well as internet groups to ensure direct communication.

(Source: Iraqi Foreign Ministry)

China’s Zhongman wins $27m Iraqi Drilling Contract

By John Lee.

China’s Zhongman Petroleum and Natural Gas Group Corp., Ltd. (ZPEC) has reportedly announced a new drilling contract with Weatherford in Southern Iraq.

Chinese media reports that the deal is worth approximately $27 million, and follows another contract with Weatherford in Iraq agreed in December.

The oil field was not identified.

(Source: Eastmoney)