Chinese companies have emerged as the winners in an oil and gas exploration licensing round in Iraq, securing bids for five fields in a move that highlights China’s growing influence in the region. The licensing round, which aimed at increasing gas production for domestic use, saw Zhongman Petroleum and Natural Gas Group (ZPEC) and China’s United Energy Group among the companies to secure projects.
Iraq, looking to attract investments to bolster its oil and gas sector, also awarded bids to an Iraqi Kurdish company and other international players. Notably absent were US oil majors, despite recent meetings between Iraqi Prime Minister Mohammed Shia and representatives of American oil firms.
The government’s goal is to boost oil production to 6 million barrels per day by 2030, up from the current 5 million. In addition to increasing oil output, the projects are intended to reduce gas flaring and eventually end gas imports, making Iraq self-sufficient in energy resources.
While Iraq’s oil sector has faced challenges such as unfavourable contract terms and political instability, Chinese companies have capitalized on opportunities and expanded their presence in the country. The increasing focus on sustainable practices by investors has also played a role in shaping the oil industry landscape in Iraq.
As Iraq moves forward with its ambitious energy goals, the partnerships with Chinese companies signal a shift in the global oil market dynamics and underline China’s growing influence in the Middle East.
