Independent oil companies in analysis and enforcement in the market dominated by specializations in Iraq

Written by Chen Izu and Ahmed Rashid

Singapore/Baghdad (Reuters) -Independent oil companies in China increases operations in Iraq, where billions of dollars are investing in the second product in OPEC even when some global specialties have declined from a market dominated by the major Beijing companies run by the country.

It is drawn through the arrangements for profitable contracts, the smaller Chinese producers are on the right path to double their production in Iraq to 500,000 barrels per day by 2030, according to estimated executives in four companies, a number that has not been previously reported.

For Baghdad, which is also seeking to attract global giants, the increasing presence of Chinese players often runs it is a shift because Iraq is under increasing pressure to accelerate projects, according to Iraqi energy employees. In recent years, the Ministry of Oil in Iraq has pushed the growing Chinese control of oil fields.

For smaller Chinese companies, which are run by the heavy weight warriors in China, Iraq is an opportunity to take advantage of low costs and the fastest development of projects that may be very small for Western or Chinese specialties.

With the presence of minimal horizons in the state -dominated oil and gas industry in China, foreign women are pushing mirrors by Chinese companies in other heavy industries to find new markets for productive ability and experience.

The unknown players including Geo-Jade Petroleum Corp, UNERGY GROUP, Zhongman Petroleum, Natural Gas Group and Anton Poilfield Services last year when they won half of the exploration license rounds in Iraq.

Executive managers of the smaller Chinese producers say that the investment climate in Iraq has improved as the country becomes more political stability and that Baghdad is keen to attract Chinese and Western companies.

Iraq wants to enhance production in more than half to more than 6 million barrels per day by 2029. The Chinese CNPC alone represents more than half of the current production of Iraq in huge fields including Hevia, Romila, and West Qurna 1.

Share profits, bearing risks

The transformation of Iraq a year ago helped contracts based on the profit sharing of fixed information agreements – an attempt to accelerate projects after scaling Exxonmobil and Shell – to attract Chinese independents.

These smaller companies are from major Chinese companies and more tolerant with many companies that may consider investing in the Gulf economy.

Ali Abdel -Alam said at Al -Bass Oil Company, which is run by the country, which ends contracts with foreign companies, said that Chinese companies provide competitive financing, reduce costs with the cheapest Chinese labor and equipment and want to accept the low margins to win long -term contracts.