SINOPEC SSC (01033) announced that its wholly-owned subsidiary, China Petroleum & Chemical Corporation International Petroleum Engineering Co., Ltd., has formally signed a fixed-price Engineering, Procurement, Supply, Construction, and Commissioning (EPSCC) turnkey contract with TotalEnergies Ratawi Project Company for the Iraq Ratawi Oilfield Phase II Wellsite and Inter-well Pipeline Project (NWP Project).

The contract value amounts to $359 million (approximately RMB 2.553 billion), representing about 3.15% of the company's 2024 operating revenue under Chinese accounting standards. Payments will be made according to milestone nodes and project progress. The contract is scheduled to achieve mechanical completion by March 31, 2029.

The company's wholly-owned subsidiary, SINOPEC Petroleum Engineering Construction Corporation, will be responsible for implementing the NWP project. This EPSCC contract has a duration of 41 months and encompasses 5 new production and reinjection wellsites, upgrades to 11 existing wellsites, 44 gathering pipelines totaling approximately 140 kilometers, along with supporting optical fiber and electrical cables.

The contract performance is not expected to materially impact the company's total assets, net assets, and net profit for 2025. However, given the extended contract duration, implementation is anticipated to have a positive effect on the company's operating revenue and total profit over the next 3-4 years.

During contract execution, unforeseen market conditions, economic factors, or force majeure events may potentially affect normal contract performance. Investors are advised to pay attention to investment risks.