Private Chinese oil companies are expanding their presence in Iraq, joining China’s state majors in pouring billions into the development of hydrocarbons in the OPEC member.
Per a Reuters report, Chinese independents in Iraq are about to see their collective output there rise to half a million barrels daily by 2030, based on estimates by company executives. For context, state giant CNPC currently accounts for half of Iraq’s oil production through the operatorship of some of the country’s largest fields, including Rumaila, West Qurna 1, and Haifaya.
The Chinese companies are replacing Western oil and gas majors who left Iraq in search of greener pastures. CNPC took over the West Qurna 1 field last year and plans to boost its capacity to 1.2 million barrels daily by 2035. West Qurna 1 is one of the largest oil fields in the world, with reserves estimated at more than 20 billion barrels of recoverable hydrocarbons. Currently, it produces around 550,000 barrels daily.
Meanwhile, the Western supermajors are returning to Iraq. Earlier this month, the Iraqi oil ministry said that ExxonMobil and Chevron were in discussions about development opportunities in Iraq’s oilfields with the government.
Commenting on ongoing talks between the federal government and Exxon, an undersecretary for the oil ministry was quoted as saying that “The Company is currently in a stage of negotiations with Iraq for a new opportunity in the country’s oilfields.”
“These moves are a positive indication of growing interest in Iraq’s oil industry by the US and other companies,” the Iraqi official added.
Separately, the other U.S. oil giant, Chevron, is in discussions to potentially sign development contracts in the Southern Nasiriyah oilfield and Balad oilfield in the North-Central Saladin governorate, the undersecretary said.
Iraq has big production growth plans, eventually topping 6 million barrels daily, reversing a decline that started several years ago. Currently, production is around 4 million barrels daily.
By Irina Slav for Oilprice.com
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