China Camc Engineering Co.Ltd(002051) (002051) announced on the evening of January 23 that the consortium formed by the company and CNOOC Petrochemical Engineering Co., Ltd. (hereinafter referred to as “CNOOC petrochemical”) and Kuwait energy Basra Co., Ltd. (hereinafter referred to as “Kuwait energy”) signed a business contract for the crude oil central processing facility project in zone 9 of Iraq. The performance of the contract will have a positive impact on the company’s business performance in the next three years.
According to the announcement, Kuwait energy is a wholly-owned subsidiary of United Energy Group Co., Ltd. (hk00467), a company listed on the Hong Kong stock exchange. United Energy Group Co., Ltd. is a large upstream oil and gas enterprise, mainly engaged in the investment and operation of upstream oil, gas and other energy related businesses, and has branches in South Asia, the Middle East and North Africa. According to the exploration, development and production service contracts signed between Kuwait energy and Iraq’s state-owned oil company Basra oil company, Kuwait energy is the operator of exploration, development and production services in the contract area of block 9, Basra province, southern Iraq.
The commercial contract amount of the crude oil central processing facility project in zone 9 of Iraq is USD 594 million. The project is located in the north of Basra province in southern Iraq, covering an area of 865 square kilometers. The project is to build a central crude oil processing facility with a daily output of 100000 barrels, and provide design, procurement, construction and commissioning services for crude oil processing system and auxiliary system.
This time, China Camc Engineering Co.Ltd(002051) as the leader of the consortium, accounting for 93% of the consortium, is responsible for EPC project management, equipment and material supply, construction commissioning and overall delivery; As a member of the consortium, CNOOC Petrochemical accounts for 7% of the consortium, and is responsible for design and related technical support.
China Camc Engineering Co.Ltd(002051) said that the contract amount of the crude oil central processing facility project in the Ninth District of Iraq was US $594 million, about 3.768 billion yuan, accounting for 47.31% of the company’s total operating revenue of 7.966 billion yuan in 2020. The performance of the contract will have a positive impact on the company’s business performance in the next three years. The performance of the contract will not affect the independence of the company, and the company’s main business will not rely on the counterparty for such transactions. The performance of one belt, one road to the other side, is conducive to consolidating and deepening the professional advantages in the petrochemical industry and expanding the market share of the companies along the “one belt and one road” area.
China Camc Engineering Co.Ltd(002051) also reminded that the execution time and amount of the commercial contract for the crude oil central processing facility project in zone 9 of Iraq may be adjusted according to the changes of relevant projects. The smooth implementation of the project will have a positive impact on the company’s operating performance this year, and the amount of impact is subject to the audited financial data. The project has the risk of affecting the contract implementation and project income due to changes in laws and regulations, raw material prices, political and social environment, exchange rate, covid-19 epidemic and other factors.
China Camc Engineering Co.Ltd(002051) core business includes five business segments: engineering contracting, design consulting, equipment manufacturing and R & D, investment operation and trade logistics. At the previous “14th five year plan” strategic planning conference, China Camc Engineering Co.Ltd(002051) chairman Wang Bo revealed that in the future, the company’s business form will cover the whole value chain integration solution from design to EPC, and then to “investment, construction and operation”, from relying solely on the international market to realizing the balanced development of China’s international market, and the mutual promotion of China’s international double cycle.
On the evening of December 20, 2021, the Republic of China announced that the consortium formed by the company and Changzhou Welle Environmental Group Co.Ltd(300190) kitchen waste treatment Co., Ltd. participated in the public bidding for social capital procurement of the PPP project of kitchen waste treatment plant project in the central area of Dalian city. The implementation of the project will help the company develop the market in the field of solid waste treatment and expand the investment and operation business of environmental engineering.
