(Yicai) July 17 -- A unit of China’s Sinopec Oilfield Service is joining hands with a local state-owned partner in Iraq to build additional facilities for the East Baghdad oilfield and expects to earn USD137 million from the project.

Sinopec Oilfield Service and Oil Projects and State Company for Oil Projects signed a contract to construct a new crude oil and natural gas processing facility as well as fire safety and power supply systems, its parent company said yesterday.

The contract period is 29 months, with mechanical completion expected by Sept. 30, 2026, the Beijing-based said.

The project to expand the East Baghdad oilfield was originally led by EBS Petroleum, a unit of China Zhenhua Oil, which signed a deal to explore and develop the onshore field in 2018.

The USD137 million that Sinopec Oilfield Service will receive is the equivalent of 1.2 percent of the firm’s revenue last year, it said, adding that the project will boost to its earnings over the next two to three years. It did not disclose how much SCOP will earn. 

Shares of Sinopec Oilfield Service [SHA: 600871] closed down 0.6 percent at CNY1.79 (25 US cents) each today. The wider Shanghai stock market fell 0.5 percent.

Editor: Emmi Laine