On July 16, Glonhui announced that Sinopec SSC (01033.HK) recently signed a fixed total price contract for design, procurement, and construction of the CPF project in the Dongba oil field with EBS PETROLEUM COMPANY LIMITED on behalf of its wholly-owned subsidiary, China Petroleum & Chemical Group International Oilfield Engineering Co., Ltd. ("National Engineering Company") and Oil Projects Company (StateCompany)- SCOP. The amount of the contract that should be obtained by the National Engineering Company is 137,374,620 US dollars (approximately 0.995 billion yuan), accounting for 1.24% of the company's operating income in 2023 under Chinese accounting standards. The contract will be paid according to milestone nodes and project progress, and mechanical completion will be achieved on September 30, 2026.
The CPF project in the Dongba oil field plans to build a crude oil treatment equipment, including first and second stage separators, electrostatic desalters, heat exchangers, natural gas desulfurization, dehydration, production water treatment equipment, and supporting public systems such as fire protection, electrical, and instrumentation. The contract period is 29 months.
The fulfillment of this contract is expected to have no significant impact on the company's total assets, net assets, and net income in 2024. Due to the long implementation period of the contract, it will have a positive impact on the company's future 2-3 years of revenue and total profit after the implementation of the contract. If there are unpredictable or uncontrollable factors such as economic, political, and market factors during the fulfillment of the contract, it may affect the normal fulfillment of the contract. Investors are reminded to pay attention to investment risks.