CNPC, IPIC Finalize Contract for Crude Pipeline Project in Middle East

On November 30, 2008, CNPC and IPIC (International Petroleum Investment Co.) signed all the documents of the EPC contract for the Abu Dhabi Crude Oil Pipeline project in Abu Dhabi, capital city of the United Arab Emirates.

The Abu Dhabi Crude Oil Pipeline, from the Habshan Oilfield in the West to the Fujairah Port in the East, is strategically significant to crude export of the UAE. The project will involve construction of 400 km, 48 inch diameter pipeline with designed rated delivery capacity of 1.5 million barrels per day, and designed maximum capacity of 1.8 million barrels per day. The pipeline will include one connecting station, one initial station, one intermediate station, one terminal station and three offshore single-point-mooring devices, as well as a submarine section of 14 kilometers.

The project will be jointly executed by China Petroleum Engineering & Construction Corporation (CPECC) and China Petroleum Pipeline Bureau (CPPB) with a total contract price of US $3.29 billion, the largest overseas turnkey engineering construction project CNPC contracted so far. Trial operation of the pipeline is estimated to be started up by the end of 2010, and the whole project is expected be completed in August 2011.