A number of Chinese companies won the investment to develop a number of oil and gas fields in Iraq, as part of a government auction held yesterday, Saturday.

The bidding aims to establish approximately 29 projects in various parts of Iraq, in light of Baghdad's continued turn to China, especially after the exit of a number of American and European companies.

The Chinese company "Chutegman" won the investment to develop the "East Baghdad and Northern Supply" fields, in addition to the Middle Euphrates gas and oil fields in Najaf and Karbala, with an area of 1,073 square kilometers.

The Chinese company "UEG" also won the investment in developing the Al-Faw oil and gas field in the border region, which is located between Kuwait and Iraq in addition to Iran, with a total area of 1,398 square kilometers in the Basra Governorate in southern Iraq, and the Kurdish company KAR in Iraq won the development of the "Dima Maysan" field. .

In light of the changes taking place, Iraq is moving towards the East, especially towards China. It seeks to increase its oil production capacity to reach 7 million barrels per day by 2027 from about 5.4 million barrels per day in mid-2023, especially after a wave of exits by some companies.

China is considered one of the largest buyers of Iraqi crude. It imports more than 1.18 million barrels per day, representing 35% of Iraqi crude oil, and Iraq occupied third place for oil suppliers to China during 2023 after Russia and Saudi Arabia.

According to S&P Global Commodity Insights, sales operations conducted and implemented by Iraqi companies lead to an increase in China's control over the Iraqi oil sector, and its participation so far has been met positively. Chinese companies adhere to local regulations and operations in light of their projects proceed smoothly.

The Minister of Oil in Iraq, Hayyan Abdul Ghani, revealed that his country’s proven oil reserves had increased from the current 142 billion barrels to 160 billion barrels, by more than 12%, noting that the fifth complementary and sixth licensing round for oil and gas fields included 29 field projects, in addition to the blocks. Oil and gas exploration is distributed among 12 Iraqi governorates.

It is expected that Iraq will obtain more than 3,459 million standard cubic feet per day of gas and more than one million barrels of oil through these two rounds, and the first day of the bidding aims to develop the eastern field in Baghdad, the northern extensions, the Dimah field, Maysan, the Middle Euphrates, Akashat Al-Faw, Al-Anz, and the Tal Hajar field, in addition to Anah. .