China marches past USA to stake a claim to Iraq’s oil

China has secured Baghdad’s first post-Saddam Hussein oil deal by reviving a 1997 concession to exploit reserves on the al-Ahdab field south of the capital.

The two countries are expected to formally sign an agreement later this month that will earn the state-controlled China National Petroleum Corp (CNPC) a fixed price for every barrel it produces in Iraq.

While China opposed the Iraq war and stood back from post-war rebuilding, Beijing has quietly outflanked its global rivals to grab a large slice of Iraq’s oil industry. The pioneers of its overseas quest for fuel are already exploring vast tracts in the Kurdish north of the war-torn nation.


With an extensive foothold in the only part of the country where new oil wells have been built since 2003, Chinese firms are already believed to have more personnel than their American rivals.

America contested every step of China’s drive to expand its oil industry in central Asia and Africa for more than a decade, viewing the push overseas as a boost for Beijing’s diplomatic standing.

Beijing’s success in the latest battleground represents a double blow for Washington whose troops are still fighting daily for Iraq’s security. With the return of stability, Baghdad hopes that its output can triple to six million barrels per day.

Telegraph