Chinese independent oil companies in Iraq

A few independent Chinese oil companies have poured into Iraq and are planning multi-billion dollar projects to develop the vast reserves. They want to compete with global state-backed majors who dominate production in OPEC’s second largest producer.

These are some details about the activities of independent firms in Iraq.

UNITED ENERGY GROUP

Around 120,000 barrels of oil are produced per day by the small Hong Kong listed company that produces oil and natural gas in Pakistan, and in China's Liaohe Oilfield. This is the largest independent oil block in Iraq.

UEG was awarded a license to explore the block Fao near the Kuwaiti-Iranian border in southern Iraq last year.

Former state oil traders manage the trading desks of the company in Singapore, Dubai, and Beijing.

ZHONGMAN PETROLEUM & NATURAL GAS GROUP

The Shanghai-listed oilfield services company, which began as an oilfield company with production assets located in China and Kazakhstan and had production assets in China and Kazakhstan before it was listed on the Shanghai Stock Exchange last year, won licenses to explore the Middle Euphrates and East Baghdad blocks.

Zhongman Petroleum announced that it will spend $481 Million on two blocks in June.

Recently, the company signed its first production sharing contract for natural gas development in Algeria.

GEO-JADE PETROLEUM

A consortium led Geo-Jade has agreed to invest in South Basra, an integrated project in southern Iraq that involves increasing the Tuba oilfield to 100,000 barrels per day and building a refinery with a capacity of 200,000 barrels per day. This is a rare project for a Chinese independent.

Geo-Jade, a Shanghai-listed company, has committed to investing $848 million with plans to restore production at the Tuba field from a largely idled state to 40,000 barrels per day by mid-2027.

The company also plans to begin pumping oil at the Naft Khana block in central Iraq in early 2027, after winning it in an auction in 2018. It aims for a production of 15,000 barrels per day in 2027. The company plans to develop the Huwaiza Field in Meysan Province, with a goal of pumping 10,000 bpd by the second half 2027.

Geo-Jade owns smaller production assets in Kazakhstan, and Albania. In 2024, it opened a trading branch in Singapore under the leadership of a former oil-trader for a Chinese state company.

ANTON OILFIELD SERVICE GROUP

Last year, the Hong Kong listed company became a project operator for the first-time, after winning the license to develop Dhufriya Oilfield in Wasit Province in eastern Iraq.

(source: Reuters)