Group 1 - The core point of the article is that China National Petroleum Engineering (600339.SH) announced that its wholly-owned subsidiary has received a project award letter for a seawater pipeline project in Iraq, with a contract value of approximately 25.24 billion USD (about 180.32 billion RMB) [1] - If the project is formally signed and successfully implemented, it will help the company consolidate and expand its oil and gas transportation engineering business in Iraq and the Middle East [1] - The project is currently in the bidding stage and there is uncertainty regarding the signing of a formal contract [1]

Core Viewpoint - The company has signed an EPSCC contract with TotalEnergies for the Atawi Gas Processing Plant project in Iraq, valued at $1.601 billion (approximately 11.538 billion RMB), which is expected to positively impact the company's revenue and profit over the next 4-5 years [1][2]. Group 1: Project Details - The Atawi GPP project involves the construction of a gas processing facility with a capacity of 320 million standard cubic feet per day (MMSCFD) and is scheduled for temporary acceptance within 39 months [2]. - The contract includes a warranty period of 24 months [2]. Group 2: Counterparty Information - TotalEnergies is a global energy company based in Paris, France, involved in the production and sale of various energy products, including oil, biofuels, natural gas, renewable energy, and electricity, operating in over a hundred countries [2]. Group 3: Impact on the Company - Successful implementation of the project will strengthen the company's position in the oil and gas field engineering market in Iraq and the Middle East, contributing positively to revenue and profit over the next 4-5 years [2]. - The project will not affect the company's independence, and its main business will not become dependent on this project [2].

Core Viewpoint - China Petroleum Engineering Corporation (中油工程) is increasingly expanding its international presence, securing significant contracts, particularly with Total Energies, which will enhance its market position in the Middle East and contribute positively to future revenues and profits [2][3][4]. Contract Awards - On June 6, 2024, the company announced it received a contract award for the Atawi Gas Midstream Pipeline EPSCC project from Total Energies, with an estimated contract value of approximately $294 million (about 2.94 billion USD) [2][3]. - On May 15, 2024, the company also received a contract award for the Atawi Gas Processing Plant EPSCC project from Total Energies, with an estimated contract value of $1.601 billion (about 16.01 billion USD) [4]. - The total new contract value for 2024 reached 125.076 billion RMB, a year-on-year increase of 14.39%, marking a historical high [7]. Market Expansion - The company is actively expanding its overseas market presence, with significant contracts awarded in 2024, including a $513 million (about 5.13 billion RMB) LNG pipeline project from ADNOC Gas [5]. - The company has established partnerships with major international oil companies (IOCs) and national oil companies (NOCs), including Total Energies and Abu Dhabi National Oil Company, leading to a new contract value of 32.983 billion RMB in high-end markets, a year-on-year increase of 46.21% [7]. Financial Performance - The company reported revenues of 83.59 billion RMB, 80.343 billion RMB, and 85.917 billion RMB for the years 2022, 2023, and 2024, respectively, maintaining revenues above 80 billion RMB for three consecutive years [6]. - The net profit for 2024 was reported at 6.35 billion RMB, a year-on-year decrease of 14.80%, attributed to intensified market competition and increased costs in overseas projects [6]. Research and Development - In 2024, the company invested 2.686 billion RMB in R&D, resulting in 231 research achievements, including 62 process packages and 173 newly authorized invention patents [8]. - The company successfully completed a major technology project, achieving international advanced levels, and made significant breakthroughs in specialized rubber technology [8]. Future Goals - For 2025, the company aims to achieve new contract values of 130 billion RMB and revenues of 86.5 billion RMB, while ensuring safety and environmental protection standards [8].

Core Viewpoint - China Petroleum Engineering has secured a contract for the construction of a gas processing plant in Iraq, valued at approximately $1.601 billion, which is expected to enhance its market position in the Middle East and positively impact future revenues and profits [1]. Group 1: Project Details - The project involves the construction of a gas processing facility with a daily processing capacity of 320 million standard cubic feet (MMSCFD) [1]. - The contract amount is approximately $1.601 billion, equivalent to about 11.538 billion RMB [1]. Group 2: Strategic Implications - Successful signing and implementation of the project will strengthen the company's presence in Iraq and the broader Middle Eastern onshore oil and gas field engineering market [1]. - The project is anticipated to have a positive impact on the company's operating revenue and total profit over the next 4-5 years [1].