By Chen Ihu and Ahmed Rashid
Singapore/Baghdad (Reuters) -the independent China oil companies are intensifying operations in Iraq, investing billions of dollars in OPEC’s number two manufacturer, even when some global specialties have returned from the market, dominated by large state -owned companies in Beijing.
Downloaded from more contracts for contracts, the smaller Chinese producers are about to double their products in Iraq to 500,000 barrels per day to about 2030, according to the estimates of leaders in four companies, as a figure not reported earlier.
For Baghdad, who also seeks to lure the global giants, the growing presence of the most private Chinese players is a change as Iraq is undergoing increasing pressure to accelerate projects, according to many Iraqi energy staff. In recent years, the Iraqi Ministry of Petroleum has repelled growing Chinese control over its oil fields.
For the smallest Chinese companies managed by veterans by the state heavy weights of China, Iraq is an opportunity to use more costs and faster development of projects that may be too small for Western or Chinese specialties.
With the scarce perspectives on China -dominated oil and gas industry, overseas pushes reflect a model from Chinese companies in other heavy industries to find new markets for productive capacity and experience.
Little-known players, including Geo-Jade Petroleum Corp, United Energy Group, Zhongman Petroleum and Natural Group and Anton Oilfield Services Group, sprayed last year when they won half of the survey.
The leaders of the younger Chinese manufacturers claim that Iraq’s investment climate has improved as the country becomes more stable and Baghdad wants to attract Chinese as well as Western companies.
Iraq wants to increase production by more than half to over 6 million BPD by 2029. Chinese CNPC only represents more than half of the current Iraq production in massive areas, including Haifaia, Rumayla and Western QURNA 1.
Sharing Profit, Risk Tolerance
The change of Iraq a year ago to contracts on the basis of sharing profit from fixed fee agreements – an attempt to accelerate projects after ExxonMobil and Shell scaled – helped to lure Chinese independent ones.
These smaller companies are agile by large Chinese companies and more resistant to the risk of many companies that can consider investing in the bay economy.
Chinese companies offer competitive funding, reduce costs with cheaper Chinese labor and equipment, and are ready to accept lower margins to win long-term contracts, said Ali Abdulameer at the State Guided Basra Co, which finalizes contracts with foreign companies.