China becomes key player in Iraq's oil industry as the Middle Eastern country rebuilds - CNA

IRAQ STILL WANTS US PARTICIPATION

Baghdad still wants US participation in its oil industry.

Iraq’s Prime Minister Mohammed Shia' al-Sudani visited Texas in April and personally invited oil companies to buy licences this year, but in vain. 

“Oil is geographically widespread. It’s being produced in ever more countries all the time. So they (the US) might be comparing Iraq with places like Suriname, or Tanzania, or Mozambique, or Papua New Guinea, or Guyana,” said Dr Krane, who is also co-director of the Middle East Energy Roundtable. 

“(These are) relatively risky locales, where they’re going to be looking for a generous production service contract with some potential upside into it.”

In Iraq’s latest licensing round, it was mostly so-called technical services contracts for sale under which oil majors get a flat fee per barrel of oil they extract.

US giants typically want a production-sharing contract, which allows them to make bigger profits.

While Chinese companies are similarly driven by profit, there is also a national imperative to extract oil - China needs to buy foreign oil to meet domestic demand and has been importing nearly half of Iraq’s oil. 

But the US is a net exporter of oil and does not share this need. 

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2024-07-03 09:37:05Z
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