US report: Growing Chinese investments in the Iraqi energy sector

POSTED ON[You must be registered and logged in to see this link.] BY [You must be registered and logged in to see this link.]

[size=52]US report: Growing Chinese investments in the Iraqi energy sector[/size]

[size=45]Translated by: Hamed Ahmed[/size]
[size=45]A report issued by the Middle East Institute for Studies in Washington dealt with the many huge investments made by Chinese companies in the Iraqi energy sector, which constitutes the main nerve of the country's economy.[/size]
[size=45]The report, which was translated by (Al-Mada), stated that “30% of the volume of China’s oil imports comes from Iraq, which is the third largest supplier of crude oil in the world.”[/size]
[size=45]He pointed out, "These equipment will increase by 50% in the year 2022 as part of the activity of the international trade movement."[/size]
[size=45]And the report continued, “The World Bank stated that oil imports over the past ten years accounted for more than 99% of the country’s exports, 85% of its budget, and 42% of the country’s GDP.”[/size]
[size=45]And the report indicated that “the long-term expectations of the Iraqi economy still face the challenges of a lack of diversification of its sources, as well as specific investments, a dilapidated private sector, and rampant corruption, despite the strong recovery of the economy after the end of the pandemic phase, high oil prices, and the increase in the volume of exports last year that made imports Oil exceeds the barrier of 115 billion dollars.[/size]
[size=45]And he added, "Iraq, since the formation of the new government last October headed by the Prime Minister, Muhammad Shia'a al-Sudani, is making its way forward with plans to enhance its oil production capacity, develop its local natural gas supplies, and repair and expand its oil refineries."[/size]
[size=45]The report emphasized that "Chinese companies are in a good position that qualifies them to contribute to efforts to expand and develop Iraq's productive capacity, as they are already involved in several investments they manage in the country in the energy sector."[/size]
[size=45]And he quotes, "observers say that achieving this may be difficult, taking into account the challenges of the investment environment in Iraq and its complex political fabric."[/size]
[size=45]And the report went, that "China's relations with Iraq in the field of energy go beyond the oil trade exchange only."[/size]
[size=45]And he stated, "The investments of Chinese state energy companies have established a foothold in several areas, including energy and infrastructure for the transport sector, within the Belt and Road investment initiative."[/size]
[size=45]The report stated that "the major Chinese oil and energy companies, including the Chinese National Oil Company, the (Petrogyna) company and other companies, have been present in Iraq for years."[/size]
[size=45]And he talked about “the Chinese National Oil Company owning shares in the Al-Ahdab, Rumaila, Halfaya and West Qurna oil fields.”[/size]
[size=45]The report added, "More than half of Iraq's oil production comes from fields that were run by the China National Oil Company and other Chinese oil companies, or are jointly with other major companies."[/size]
[size=45]And he continues, “The Iraqi Oil Exploration Company signed in late 2022 a contract with the Chinese company (CNOOC) to move forward with a project, which was agreed upon in 2019, to explore for an oil field near the coast in Basra.”[/size]
[size=45]The report confirmed, “(Petrogyna) seeks to acquire the management of Iraq’s giant oil field (West Qurna-1).”[/size]
[size=45]And he continues, “Smaller Chinese oil companies, such as (Geo Jade) Petroleum Company and (United Group) Energy Company, have entered the field of investments in Iraq.”[/size]
[size=45]And he stated, “The (Geo Jaid) company signed contracts to develop the Hoveizeh and Naft Khana oil fields, which are located along the Iraqi border with Iran.”[/size]
[size=45]The report indicated that “the (United) Energy Group concluded a deal to develop the Sinbad oil field near Basra.”[/size]
[size=45]He noted that "Chinese contractors have doubled their investment activities in the Iraqi energy sector in recent years."[/size]
[size=45]The report is based on the “Index of Chinese investments around the world, which confirmed that Iraq, during the period between 2007 and 2022, awarded 24 construction contracts in the field of energy to Chinese companies, out of 41 contracts.”[/size]
[size=45]He explained, "About 15 contracts were awarded to the Chinese National Oil Company, and in April a contract was awarded to another Chinese company to develop the Iraqi Mansouriya gas field located near the Iranian border."[/size]
[size=45]And the report stated, "Successive Iraqi governments have pledged to expand the country's productive and export capacity."[/size]
[size=45]And he went on to say that "the current government has set its priorities to achieve self-sufficiency in gas manufacturing and to end the gas flaring process, as well as attempts to meet Iraq's internal needs of this substance."[/size]
[size=45]The report stated, "This has also stimulated the government's strategy to encourage foreign investment in the field of oil refining and open new horizons for international companies and the local private sector as well."[/size]
[size=45]He added, "The current government has shown its keenness to work with international oil companies to expedite the implementation of bilateral contracts and has encouraged foreign investment in the field of oil refining and building refineries."[/size]
[size=45]And the report continues, “The current Iraqi government, in managing its relations with international and regional powers, especially in the field of energy, seems to be seeking to promote balanced relations with all major parties.”[/size]
[size=45]And he stated, "Al-Sudani sought at the regional level to build a work base for strong relations with neighboring Gulf countries, and his first tour was to Jordan and Kuwait, and he also visited Saudi Arabia and then to Cairo and Istanbul."[/size]
[size=45]The report believed that "Iraq occupies a good position to benefit from an improvement in the easing of regional geopolitical tensions emanating from the rapprochement between Saudi Arabia and Iran, which Baghdad had a role in achieving."[/size]
[size=45]And he added, "The Iraqi prime minister traveled to Paris, where he signed a strategic partnership agreement, as well as to Berlin to attract investments, especially in the energy sector."[/size]
[size=45]And the report went on, “The government, while it called for strengthening the joint strategic framework agreement with the United States in the economic field as well, has since welcomed Chinese investments and activating the oil-for-projects deal for 2019.”[/size]
[size=45]For: Middle East Institute for Studies[/size]
[size=45][You must be registered and logged in to see this link.]