Chinese Independent Oil Firms Expand in Iraq with Major Investment Projects

Several independent Chinese oil companies are making significant inroads into Iraq's energy sector, aiming to develop its extensive oil reserves through multi-billion-dollar projects. These firms seek to challenge the dominance of major state-backed international oil corporations operating in the region, which is one of OPEC's largest producers. One notable player, United Energy Group, a Hong Kong-listed company with oil and natural gas operations in Pakistan and China's Liaohe Oilfield, was granted exploration rights for the Fao block near the Iran-Kuwait border last year. The company produces approximately 120,000 barrels daily. Zhongman Petroleum & Natural Gas Group, based in Shanghai, has expanded its exploration activities into Iraq with licenses for the Middle Euphrates and East Baghdad blocks. The firm announced a $481 million investment across these projects and recently secured its first natural gas production sharing contract in Algeria. Geo-Jade Petroleum, also Shanghai-listed, is investing heavily in southern Iraq's South Basra region. The consortium plans to increase Tuba oilfield output to 100,000 barrels per day and establish a 200,000 barrels-per-day refinery. Th...