The Los Angeles Post
U.S. World Business Lifestyle
Today: April 13, 2025
Today: April 13, 2025

Chinese companies win more bids to explore for Iraq oil and gas

FILE PHOTO: Representatives of energy firms from around the world attend the fifth plus and sixth licensing rounds for 29 oil and gas exploration blocks at the Oil Ministry's headquarters in Baghdad
May 12, 2024

By Moayed Kenany, Adam Makary and Timour Azhari

BAGHDAD (Reuters) -Chinese companies won five more bids to explore Iraqi oil and gas fields, Iraq's oil minister said on Sunday, as the Middle Eastern country's hydrocarbon exploration licensing round continued into its second day.

Chinese companies have been the only foreign players to win bids so far, taking licenses covering 10 oil and gas fields since Saturday, while Iraqi Kurdish company KAR Group took two.

Chinese companies win more bids to explore for Iraq oil and gas
FILE PHOTO: Iraqi Prime Minister Mohammed Shia al-Sudani attends the fifth plus and sixth licensing rounds for 29 oil and gas exploration blocks at the Oil Ministry's headquarters in Baghdad

The oil and gas licences for 29 projects in total are mainly aimed at ramping up output for domestic use, with more than 20 companies pre-qualifying, including European, Chinese, Arab and Iraqi groups.

Iraq wanted this licensing round - the country's sixth - in particular to increase output of natural gas, that it wants to use to fire power plants that rely heavily on gas imported from Iran. However, no bids were made on at least six fields with gas potential, potentially undermining those efforts.

Also notably no U.S. oil majors have been involved, even after Iraqi Prime Minister Mohammed Shia met representatives of U.S. companies on an official visit to the United States last month.

Among specific awards, China's CNOOC Iraq won a bid to develop for oil exploration Iraq's Block 7, that extends across the country's central and southern provinces of Diwaniya, Babil, Najaf, Wasit and Muthanna, said oil minister Hayan Abdul Ghani.

Chinese companies win more bids to explore for Iraq oil and gas
FILE PHOTO: China National Offshore Oil Corp (CNOOC) headquarters in Beijing

ZhenHua, Anton Oilfield Services and Sinopec won bids to develop the Abu Khaymah oilfield in Muthanna, the Dhufriya field in Wasit and the Sumer field in Muthanna, respectively, the minister said.

China's Geo-Jade won a bid to develop Iraq's Jabal Sanam field for oil exploration in Basra province, Iraq's oil minister added.

Iraq, OPEC's second-largest oil producer behind Saudi Arabia, has been hampered in its oil sector development by contract terms viewed as unfavourable by many major oil companies, as well as recurring military conflicts and growing investor focus on environmental, social and governance criteria.

(Reporting by Moayed KenanyWriting by Adam Makary and Timour AzhariEditing by David Goodman, David Holmes and Frances Kerry)

Related Articles

Stocks fall as rally pauses, yields climb on Trump policy worry Oil prices hold near 2-week low after OPEC cuts demand view, dollar rises Vitol CEO sees $70-$80/bbl oil prices in 2025, flags supply uncertainty Trump's victory may pressure oil prices through 2025, Citi says
Share This

Popular

Business|Economy|Political|US|World

How China went from courting Trump to โ€˜never yieldโ€™ tariff defiance

How China went from courting Trump to โ€˜never yieldโ€™ tariff defiance
Asia|Business|Economy|Political|World

As tariffs put trade between China and the US in peril, Chinese businesses ponder the future

As tariffs put trade between China and the US in peril, Chinese businesses ponder the future
Business|Economy|Environment|Food|Technology

New gear could keep California crab fishermen on the water longer, and whales safe

New gear could keep California crab fishermen on the water longer, and whales safe
Asia|Business|Economy|Finance|Political

Japan policymaker wants stronger yen, says Tokyo shouldn't sell Treasuries

Japan policymaker wants stronger yen, says Tokyo shouldn't sell Treasuries

Economy

Business|Economy|Environment|Food|Technology

New gear could keep California crab fishermen on the water longer, and whales safe

New gear could keep California crab fishermen on the water longer, and whales safe
Australia|Economy|Election|Political

Australian prime minister's party launches election campaign

Australian prime minister's party launches election campaign
Asia|Business|Economy|Finance|Political

Japan policymaker wants stronger yen, says Tokyo shouldn't sell Treasuries

Japan policymaker wants stronger yen, says Tokyo shouldn't sell Treasuries
Business|Economy|Europe|Finance|Political

Britain makes $26 billion export finance support available amid tariff turmoil

Britain makes $26 billion export finance support available amid tariff turmoil

Access this article for free.

Already have an account? Sign In