China Oil HBP Group has secured an engineering, procurement, construction, operations and maintenance (EPCOM) contract for a project to restore production at Iraq's historic Naft Khana oilfield. The contract, valued at US$225.218 million, was awarded by the field's operator, NK Petroleum Company Limited, a Hong Kong-registered, wholly-owned subsidiary of Geo-Jade Petroleum Corporation.

Contract Significance and Scope

The contract value represents 61.2% of HBP's audited operating income for the 2024 fiscal year. It is expected to significantly boost the company's operating performance through 2026 and 2027, while consolidating its market position in the Middle East. The comprehensive workscope includes:

• Inspection, assessment, and repair of existing oilfield facilities.
• Reconstruction of the central processing facility (CPF).
• Construction of a gas processing unit.
• Reconstruction of field surface facilities (FSF).
• Construction of a power plant and the owner’s camp.
• Provision of three-year operations and maintenance (O&M) services.

Project Timeline and Goals

The project's foundation work for main equipment is slated for completion in October 2026, with mechanical completion targeted for April 2027. Provisional acceptance of the EPC portion is aimed for within 18 months from 1 December 2025, to be followed by the three-year O&M service period. According to the production rehabilitation plan, the restored field is projected to achieve a production capacity of 9,500 barrels of oil per day and process 40 million cubic feet per day of associated gas. This compares to the field's historical peak production of 25,000 barrels per day.

Project Status and Background

The foundation stone-laying ceremony was held on 31 December 2025. Operator NK Petroleum, which holds agreements with Iraq's state-owned Midland Oil Company, is responsible for exploration, development, and production activities. Preparatory work has advanced, with the completion of 3D seismic surveys and the launch of a drilling plan for eight new oil wells.