(Yicai Global) April 10 -- Zhongman Petroleum and Natural Gas Group Corp. (ZPEC) has won a USD27.6-million drilling contract in Iraq to help the Chinese drilling company expand across the Middle East.
ZPEC and PPL Asia E&P BV, part of Pakistan Petroleum Ltd., signed a two-year deal for oil and natural gas exploration and development at Block 8 in eastern Iraq, the Shanghai-based firm said in a statement. The target location is a 6,000-square-kilometer block based around 110 kilometers east of Baghdad.
The deal will help ZPEC acquire more business in the Middle East and its success will be reflected in the company’s financials for this year and next, the contractor said.
The announcement comes less than one week after the two firms signed their first agreement, a USD22.9-million deal for a gas drilling project in Pakistan.
Privately held ZPEC, a global drilling contractor and oil equipment maker, has subsidiaries in the key oil-producing regions of Dubai (the United Arab Emirates), Basra (Iraq) and Tehran (Iran). Founded in 2003, its clients include China’s three major state oil firms as well as Royal Dutch Shell Plc, Gazprom Neft PJSC and other international giants.
Pakistan Petroleum is a leading oil and natural gas supplier in Pakistan. It is 68-percent government-owned and provides more than 20 percent of the country’s gas.