Iraq and China sign agreement for the development of new gas fields

China is making further progress in Iraqi oil and gas by signing an initial agreement with Iraqi state-owned Midland Oil Company to develop the Mansuriya gas field with a Chinese-Iraqi consortium.

The Mansuriya field, which is already in production, is expected to produce 100 million standard cubic feet of gas over a period of 18 months and 300 mscf projected over a period of 4 to 5 years, Reuters reported, citing a statement from the Iraqi Oil Ministry on Monday.

In early May, Chinese companies won four bids for oil and gas exploration in Iraq with 29 projects up for bid.

Baghdad is trying to increase domestic oil and gas production, reducing dependence on Iran for gas, in particular.

China is the only winning bidder in the Iraqi auctions, acquiring nine oil and gas fields last week, an Iraqi Kurdish company took two and no American oil majors participated.

China’s exploration giant CNOOC has won a tender to develop onshore Block 7 in central and southern Iraq, while China’s Sinopec will develop four oil fields, including Abu Khaymah, Dhufriya, Wasit and Summer, it reported. Voice of America.

While Baghdad’s main goal is to boost gas production for domestic use, two high-potential gas fields that were auctioned failed to attract any attention, not even from the Chinese.

In 2019, Baghdad and Beijing signed the agreement Oil for Reconstruction and Investment, opening the door for Chinese companies to invest in Iraqi infrastructure in exchange for oil. Since then, Chinese companies have been close to completing construction of a 300,000 barrels per day refinery at the key port of Faw in Iraq.