Recon Wins $2.8MM EPC Heavy Oil Contract

Recon Wins $2.8MM EPC Heavy Oil Contract
The project will focus on a heavy oil transportation system project in the Garraf oilfield in Iraq.

Recon Technology Ltd. has signed a $2.8 million engineering and construction service subcontract with Grand Energy Development Ltd. on a heavy oil transportation system project in the Garraf oilfield in Iraq.

Recon will carry out all the engineering design services, provide the technical support to the procurement, construction, commissioning activities and provide the training services on the heavy oil transportation system project.

Garraf oilfield is in the province of Thi Qar, Iraq, about 5km northwest of Al-Refaei city and 85km north of Nasiriya city. The oilfield is 17.5km long and 5.5km wide. It is estimated to hold 1.3 billion barrels of oil reserves. Based on the development plan that was approved by the government of Iraq in 2018, the field is undergoing additional development in stages and targeting oil production of 230,000 barrels per day by the end of this year.

As part of the project, a heavy oil pipeline with a planned capacity of 275,000 barrels per day will be built to support the Garraf production target.

"With advanced technique and wide experiences in the automation and digitalization of oil and gas industry, Recon has a relatively competitive advantage in the engineering design and construction businesses in the oilfield segment," Shenping Yin, co-founder and CEO of Recon said in a written statement. "With the successful completion of the project, we expect to construct more oilfield projects and hope to help more oilfields reduce costs and maintain yields at a healthy level in the near future."

Recon Technology is China's first non-state-owned oil and gas field service company listed on Nasdaq. The firm supplies China's largest oil exploration companies with advanced automated technologies, gathering and transportation equipment and reservoir stimulation measures for increasing petroleum extraction levels, reducing impurities and lowering production costs.

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