Iraq awards $2.5 billion seawater pipeline project to China’s CPEC
Basra Oil Company selects Chinese firm to support water injection efforts in southern oilfields
BAGHDAD, Iraq (MNTV) — Iraq has awarded a $2.5 billion contract to China Petroleum Engineering Corporation (CPEC) to develop a major seawater pipeline project aimed at supporting the country’s southern oilfields.
The Basra Oil Company (BOC), a key state-run entity overseeing Iraq’s southern energy sector, selected CPEC’s affiliate, Pipeline Engineering, to lead the engineering and construction of the project.
The announcement was made by China National Petroleum Corporation (CNPC), CPEC’s parent company, and first reported by Yicai Global.
The project will involve laying a main pipeline from seawater treatment facilities on the coast to several inland connection stations, followed by the installation of branch pipelines linking those stations to oilfield distribution points. Onshore infrastructure to support the system is also part of the scope.
CPEC estimates that the full execution of the project will take around 54 months. While a formal agreement is yet to be finalized, the company expressed optimism that if legally contracted and completed, the project will significantly enhance its revenues over the next four to five years.
The seawater pipeline system is part of Iraq’s long-term strategy to increase oil production capacity by supporting water injection—a critical method to maintain reservoir pressure in mature fields across Basra and neighboring regions.
CPEC, a subsidiary of CNPC, has increasingly turned its focus to higher-end projects in partnership with global energy majors and national oil companies. In recent months, its affiliated companies have also signed two major contracts with France’s TotalEnergies, valued at $1.6 billion and $294 million respectively.
The awarding of the seawater pipeline project reflects Iraq’s continued collaboration with Chinese firms to accelerate infrastructure development in the energy sector under its broader oil production expansion plans.
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