BAGHDAD – A wave of private Chinese oil firms is significantly reshaping Iraq’s hydrocarbon landscape, as smaller independent companies aggressively pursue multi-billion‑dollar contracts and aim to double their production to 500,000 barrels per day (bpd) by 2030.
Companies such as Geo‑Jade Petroleum, United Energy Group (UEG), Zhongman Petroleum, and Anton Oilfield Services Group are capitalising on Iraq’s shift toward profit-sharing contracts, a departure from previously used fixed-fee models that have deterred global oil majors like ExxonMobil and Shell.
These independents operate with lower overheads and faster turnaround, often completing project developments within two to three years, compared to the five–ten year timelines of Western counterparts. The cost to drill a development well in Iraq has reportedly dropped by almost half, now averaging US$4–5 million per well.
A notable example is Geo‑Jade Petroleum’s South Basra integrated project, which includes revitalising the Tuba oilfield to 100,000 bpd, constructing a 200,000-bpd refinery, and building associated petrochemical and power infrastructure. The company has pledged US$848 million to this initiative, aiming to restart Tuba production at 40,000 bpd by mid‑2027.
United Energy Group, which already produces approximately 120,000 bpd in Block 9, and Zhongman, which plans a US$481 million investment in the Middle Euphrates and East Baghdad North blocks, represent further progress among independents securing exploration rights and scale-building in Iraq.
While these trends mark a transformative shift in Iraq’s energy sector, concerns persist. Critics warn of limited technology transfer, reliance on Chinese labour over local workers, and weaker compliance with industry transparency standards. Former Basra Oil Co. manager Muwafaq Abbas cautioned that such deficits could undermine Iraq’s broader ambition to modernise its infrastructure.
Despite these concerns, Iraq continues to pursue a diverse portfolio of investors. Western major companies such as TotalEnergies and BP are staging comebacks—initiating projects in the $25–$27 billion range—to participate in Iraq’s planned production scale-up toward 6 million bpd by 2029.
Source: Reuters
