Chinese companies win licensing bids to explore Iraq oil and gas fields

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Iraq,Oil

BAGHDAD: Chinese companies won bids to explore five Iraqi oil and gas fields on Saturday (May 11) in a licensing round for hydrocarbon exploration that was primarily aimed at ramping up gas production for domestic use.

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, Iraq, on May 11, 2024.

An Iraqi Kurdish company also took two of the 29 projects up for grabs in the three-day licensing round across central, southern and western Iraq, which for the first time includes an offshore exploration block in the country's Arab Gulf waters. There were notably no US oil majors involved, even after Iraqi Prime Minister Mohammed Shia met with representatives of US oil firms during an official visit to the United States last month.Zhongman Petroleum and Natural Gas Group took the northern extension of the Eastern Baghdad field, in Baghdad, and the Middle Euphrates field that straddles the southern Najaf and Karbala provinces, the oil ministry said.

The government also wants the projects to produce enough natural gas so that, along with plans to all-but eliminate gas flaring by 2030, Iraq could end imports.Iraq, OPEC's second-largest oil producer after Saudi Arabia, at one time had targeted becoming a rival to the Gulf Arab kingdom with output of over a tenth of global demand.

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