Chinese Independent Oil Firms Invest Billions in Iraq’s Energy Sector

Independent Chinese oil companies are ramping up their presence in Iraq, committing multi-billion-dollar investments to tap the nation’s vast oil and gas reserves. Their growing footprint challenges both global energy giants and Beijing-backed state-owned firms that dominate production in OPEC’s second-largest oil producer.

United Energy Group (UEG), a Hong Kong-listed firm with operations in Pakistan and China’s Liaohe oilfield, produces about 120,000 barrels per day (bpd) in Iraq’s Block 9 — the largest output among the independents. In 2024, UEG secured exploration rights for the Fao block near Kuwait and Iran. The company also runs oil trading desks in Singapore, Dubai, and Beijing, staffed by former state oil traders.

Zhongman Petroleum and Natural Gas Group, originally an oilfield services company, won exploration licenses for the East Baghdad (North) and Middle Euphrates blocks. The Shanghai-listed company plans to invest $481 million in these projects and recently signed its first production-sharing deal for a natural gas project in Algeria.

Geo-Jade Petroleum leads a consortium investing $848 million in the South Basra integrated project, including ramping up the Tuba oilfield to 100,000 bpd and constructing a 200,000-bpd refinery. The Shanghai-listed firm aims to revive Tuba output to 40,000 bpd by mid-2027 and start producing from Iraq’s Naft Khana block and Huwaiza field the same year. It also operates small assets in Kazakhstan and Albania and recently opened a Singapore trading office.

Anton Oilfield Services Group, previously a service provider at Iraq’s Majnoon field, became a project operator in 2024 after winning the license to develop the Dhufriya oilfield in Wasit province.

These aggressive moves by Chinese independents signal intensifying competition in Iraq’s oil sector, with potential to reshape the country’s production landscape.