US report: China begins to expand its oil investment in Iraq

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[size=52]US report: China begins to expand its oil investment in Iraq[/size]

[size=45]Translated by: Hamed Ahmed[/size]
[size=45]A report by the American oil and energy news website (Oil Price), translated by (Al-Mada), stated that “the United States, while maintaining the activity of its oil companies in Iraq and seeking to buy 30 shares of the French (Total Energy) project deal in Iraq, amounting to $ 27 One billion dollars, it seems that China, on the other hand, is taking more direct steps to expand its oil activity and investment in that country.[/size]
[size=45]The report added, "Last week, three Chinese companies were awarded oil contracts within the fifth licensing round for exploratory patches and border fields, according to Iraqi Oil Minister Hayan Abdul-Ghani."[/size]
[size=45]He pointed out, "Six exploratory plots were referred for development by the winning companies, three of which went to Chinese companies, and the other was won by three Emirati companies."[/size]
[size=45]The report quoted an informed source as saying, “The Chinese company (Petrogyna) is seeking to be the main operator of the giant (West Qurna-1) oil field, while the American company (Exxon Mobil) is close to the stage of selling its stake in the site, which amounts to 32.7% of the value of the shares.” .[/size]
[size=45]He explained, "The (West Qurna-1) field, which China seeks to develop, is located 65 km from the main southern export port in Basra, and includes an estimated reserve volume of about 43 billion barrels within the giant West Qurna area, which includes the two oil fields (West Qurna - 1) and (West Qurna - 2).[/size]
[size=45]The report noted that “the (West Qurna-1) field contains approximately 9 billion barrels of the total reserves of the block.”[/size]
[size=45]And he added, "The Iraqi Ministry of Oil stated at the beginning of 2019 that the field includes an equivalent oil reserve of more than 20 billion barrels."[/size]
[size=45]And the report continued, “The ministry confirmed that the plans were directed to enhance the capacity of crude oil production from the field to reach by the year 2025 to more than 700 thousand barrels per day, in addition to the current production amount in the field, which ranges between 450 to 500 thousand barrels per day.”[/size]
[size=45]And he stated, "The estimated cost of extracting crude oil from the field ranges between 1 to 2 dollars per barrel, as is the case with the rest of the large Iraqi oil fields."[/size]
[size=45]He believes, "This cost is the lowest cost of oil extraction in the world, as is the case with the oil fields of Iran and Saudi Arabia."[/size]
[size=45]And he went on, "The (Petro China) company, which is a subsidiary of the Chinese National Oil Company (CNPC), has bought 32.7% of the shares in the field, the same size as the shares of the American (Exxon Mobil) company in the field."[/size]
[size=45]The report promised, “China has long been the dominant partner in the (West Qurna-1) field,” noting that “the Chinese Petroleum Engineering and Construction Company (CPECC) had won a development contract for the West Qurna-1 field in mid-2021.”[/size]
[size=45]He stressed, "The contract, worth $121 million, was initially intended for the development of facilities used to extract gas during the crude oil production process."[/size]
[size=45]And the report added, "The project has expanded and deepened in size and capacity to integrate and link with the activities of (Petro China) in the (West Qurna-1) field."[/size]
[size=45]And he talked about “using the same contract formula in the neighboring giant Majnoon field when the British company (Shell) decided to leave the site in 2017 and award it to the Chinese Petroleum Company (CPECC) as part of a contract project to build an engineering facility worth $203.5 million to treat sour gas at the Majnoon field site.”[/size]
[size=45]And the report continued, “Before this contract, two other Chinese companies in the Majnoon field had signed contracts for drilling wells and management and development services.”[/size]
[size=45]And he stressed, “Signing a contract with the Chinese (Heilong Oil) Services and Engineering Company to drill 80 wells in the field, at a value of $ 54 million.”[/size]
[size=45]The report indicated that “the Chinese Anton (Oil) company obtained a contract for a project management and development services in the field.”[/size]
[size=45]And he goes on, “The plan drawn for the Majnoon field, whose oil reserves are around 38 billion barrels, was to increase its production from the current rate of 240,000 barrels per day to 600,000 barrels per day, by the year 2026.”[/size]
[size=45]The report went on to say that “the contracts won by Chinese oil companies within the fifth licensing round for this year are the development and exploration of the Khana oil field in Diyala Governorate, which was won by the Chinese (Geo Jade) company.”[/size]
[size=45]And he continued, "The second paragraph of the plan includes the development of the Al-Huwaiza oil field and its production in Basra Governorate, and the (Geo-Ged) company also won it."[/size]
[size=45]And the report went on, that "the third paragraph of the plan includes the development of the Sinbad oil field and its production in Basra Governorate, which was transferred to the Chinese company (UIG)."[/size]
[size=45]On the site (Oil Price) for oil news[/size]
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