Iraq has taken a major step in energy infrastructure by awarding a major pipeline contract to a Chinese firm. The country approved a $2.5 billion seawater pipeline project under the China CPEC project in Iraq, showing deepening cooperation between Baghdad and Beijing.
The Basra Oil Company (BOC) selected China Petroleum Engineering Corporation (CPEC) for this strategic initiative. CPEC operates as an engineering branch of China National Petroleum Corporation. Its affiliate, Pipeline Engineering, will carry out the construction.
The project involves building a large seawater pipeline network. This includes a mainline from seawater treatment sites to connection stations and branch pipes reaching oilfields. Onshore facilities will also be developed to support operations.
Engineers estimate the construction timeline at around 54 months. Once completed, the pipeline will support oil production by delivering treated seawater to enhance oil recovery methods.
While the final contract has not been signed yet, CPEC expects strong financial returns. If the project moves forward as planned, it will boost CPEC’s revenue over the next five years.
This deal reflects China’s growing role in Middle Eastern energy development. The China CPEC project in Iraqhighlights a shift in Baghdad’s global partnerships, especially as China increases its investments in Iraq’s energy sector.
CPEC has focused more on high-end projects, often working with international and local energy giants. In recent months, the company also signed two major deals with TotalEnergies of France. These deals were worth $1.6 billion and $294 million respectively, showing CPEC’s broad reach in global energy infrastructure.
The seawater pipeline project is essential for oil extraction in Iraq’s southern fields. Using seawater for enhanced oil recovery helps maintain reservoir pressure. This method extends the life of oilfields and increases overall production.
Iraq sees this project as key to improving oil output while strengthening partnerships with China. The China CPEC project in Iraq stands as a model of international collaboration and long-term investment.
With major infrastructure underway and energy strategies evolving, Iraq positions itself as a leading oil supplier with global support. This project may also open doors for more Chinese-led ventures in the country.