BAGHDAD (Reuters) -Chinese companies won bids to explore five Iraqi oil and gas fields on Saturday in a licensing round for hydrocarbon exploration that was primarily aimed at ramping up gas production for domestic use.
An Iraqi Kurdish company also took two of the 29 projects up for grabs in the three-day licensing round across central, southern and western Iraq, which for the first time includes an offshore exploration block in the country’s Arab Gulf waters.
Iraq aims to lure billions of dollars of investments to develop its oil and gas sector as it looks to ramp up local petrochemicals production and end imports of gas from neighbouring Iran that are currently key to producing power.
More than 20 companies pre-qualified for the licensing round, including European, Chinese, Arab and Iraqi groups.
Despite Iraqi Prime Minister Mohammed Shia’s meeting with U.S. oil firm representatives, no U.S. oil majors participated. This absence highlights a shift in energy partnerships.
Five bids were won on Saturday by Chinese companies.
Expanding their presence into Iraq allows Chinese companies to tap into the vast reserves of oil and gas that the country possesses, presenting lucrative opportunities for exploration and production.
Furthermore, the collaboration between Chinese companies and Iraq in exploration holds immense promise for mutual gain and cooperation. Chinese firms, with their expertise, can assist Iraq in enhancing its energy resources for economic progress.
Concurrently, Iraq offers Chinese companies lucrative prospects to diversify their portfolios and bolster the global energy market. This symbiotic alliance sets the stage for enduring collaboration and prosperity in energy exploration and production.
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