Securities code: 002051 securities abbreviation: China Camc Engineering Co.Ltd(002051) Announcement No.: 2022-005 China Camc Engineering Co.Ltd(002051) announcement of major contracts
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special tips:
1. The commercial contract for the crude oil central processing facility project in zone 9 of Iraq shall come into force as of the date of signing by both parties.
2. The execution time and amount of the commercial contract for the crude oil central processing facility project in block 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. 3. 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.
1、 Contract signing overview
On January 21, 2022, China Camc Engineering Co.Ltd(002051) (hereinafter referred to as ” China Camc Engineering Co.Ltd(002051) ” and “the company”) and CNOOC Petrochemical Engineering Co., Ltd. (hereinafter referred to as “CNOOC petrochemical”) signed a business contract for the crude oil central processing facility project in zone 9 of Iraq with Kuwait energy Basra Co., Ltd. (hereinafter referred to as “Kuwait energy”).
The commercial contract amount of the crude oil central processing facility project in block 9 of Iraq is USD 593584975. The project is located in the north of Basra province in southern Iraq, covering an area of 865 square kilometers. The content of 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.
2、 Introduction to counterparty
1. Name of counterparty: Kuwait energy Basra Limited
2. Authorized representative: Song Yu
3. Registered address: Tortola, British Virgin Islands
4. Related relationship: Kuwait energy has no related relationship with any party of the consortium. 5. Similar transactions: the company had no similar business with Kuwait energy in the previous fiscal year.
6. Performance capability analysis: 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.
3、 Basic information of consortium members
Company name: CNOOC Petrochemical Engineering Co., Ltd
Legal representative: Li Deqiang
Registered capital: 466794435 yuan
Business scope: engineering design, engineering consulting and general contracting (operating with qualification); Project management, technical consulting services, technology development and application; Sales: building materials, decoration materials, metal materials, mechanical equipment, wires and cables, instruments and meters, hardware and electrical and electronic products; House leasing; Import and export of goods and technology; Contracting foreign projects suitable for its strength, scale and performance; Dispatch labor personnel required for the implementation of the above overseas projects (operate with a license) (for projects that must be approved according to law, business activities can be carried out only after being approved by relevant departments).
As the leader of the consortium, the company accounts for 93% of the consortium’s share, and 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.
CNOOC Petrochemical has no relationship with the company and has no similar business with the company in the previous fiscal year.
4、 Main terms of the contract
1. Trading parties
Owner: Kuwait energy Basra Co., Ltd
Contractor: China Camc Engineering Co.Ltd(002051) and CNOOC Petrochemical Engineering Co., Ltd
2. Project content
Build a central crude oil processing facility with a daily output of 100000 barrels to provide design, procurement, construction and commissioning services for crude oil processing system and auxiliary system.
3. Contract price and payment
The contract price of the contract is USD 593584975, and the contract amount can be adjusted for changes (if any) of relevant works. The owner shall pay the progress payment to the contractor according to the milestones agreed in the contract.
4. Contract duration
33 months from the date of notice to proceed.
5. Effectiveness of contract
The contract shall come into force from the date of signing by both parties.
6. Main responsibilities of both parties
The owner shall provide the necessary conditions for the contractor to enter the project site for construction in accordance with the provisions of the contract, timely pay the contractor according to the milestone progress of the project, and conduct management coordination during the construction process.
In accordance with the contract, the Contractor shall provide the owner with complete solutions with its own technical experience and independently developed project management technology, undertake the design, implementation, completion and defect repair (if any) of the project, and the project shall meet the expected purpose specified in the contract after completion.
7. Liability for breach of contract
If one party fails to perform the responsibilities and obligations agreed in the contract, it shall actively take remedial measures and compensate the other party for the losses caused thereby.
5、 Impact of contract performance on the company
The contract amount of the crude oil central processing facility project in the Ninth District of Iraq is 593584975 US dollars, about 3768.3744 million yuan, accounting for 47.31% of the company’s total operating revenue of 7965.9901 million 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.
6、 Risk tips for contract performance
1. The commercial contract for the crude oil central processing facility project in zone 9 of Iraq shall come into force as of the date of signing by both parties.
2. The execution time and amount of the commercial contract for the crude oil central processing facility project in block 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. 3. The project has the risk of affecting the contract execution 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.
7、 Other relevant instructions
1. The company will timely disclose the progress of contracts in the form of interim reports, and disclose the performance of major contracts in regular reports.
2. Documents for future reference: contract for design, procurement, construction and commissioning of crude oil central processing facility project in zone 9 of Iraq.
It is hereby announced.
China Camc Engineering Co.Ltd(002051) board of directors
January 24, 2022
