China's Sinopec Oilfield Service is set to earn USD 137 million by joining a consortium to build additional facilities for Iraq's East Baghdad oilfield.

The consortium, including a unit of Sinopec Oilfield Service and Iraq's state-owned Oil Projects, signed a contract to construct new crude oil and natural gas processing facilities with fire protection and electric supply systems. The engineering construction service provider announced the project yesterday but did not disclose the financial gains for the local partner. Sinopec Oilfield Service, a subsidiary of the state-owned Sinopec, expects the project to take 29 months, with mechanical completion by September 30, 2026.

EBS Petroleum, a subsidiary of China Zhenhua Oil, leads the East Baghdad oilfield expansion. EBS signed an agreement with Iraq in 2018 to explore and develop the onshore oilfield.

Sinopec Oilfield Service stated that the expected income equals 1.2 percent of its revenue from last year and will positively impact its revenues and profits over the next two to three years.

Despite the positive forecast, Sinopec Oilfield Service's stock [SHA: 600871] dropped by 0.6 percent to CNY 1.79 (US 25 cents) in Shanghai today.