Iraq has signed a wide-ranging agreement with China’s Geo-Jade Petroleum to boost oil production and develop key energy infrastructure, officials announced this week.
The deal includes expanding output at the Tuba oil field and building a 200,000-barrel-per-day refinery. It also involves the construction of two power plants—one conventional with a capacity of 650 megawatts, and another solar facility producing 400 megawatts. Additionally, the agreement covers the development of a petrochemicals complex and a fertilizer plant, according to a report from AFP.
“These projects with Geo-Jade represent a big leap in the development of Iraq’s oil wealth and support for the national economy,” said Iraq’s oil minister, Hayan Abdel Ghani. He noted that the deal would also create thousands of jobs.
Geo-Jade Petroleum already operates in Iraq, managing the Khana oil field, which is expected to increase production by 2026.
Chinese companies have built a strong presence in Iraq’s energy sector, reflecting Beijing’s broader push to secure global energy supplies. According to earlier reporting by energy analyst Simon Watkins, Chinese firms now oversee over a third of Iraq’s oil and gas reserves and handle up to 66% of its production.
Iraq currently produces about 4 million barrels of oil per day, exceeding its OPEC+ quota and sparking tensions with top producer Saudi Arabia. The Iraqi government has plans to raise output to 7 million barrels per day in the coming years, and Chinese companies are well-positioned to benefit from that expansion.
The new deal stems from a 2019 agreement between Iraq and China known as “Oil for Reconstruction and Investment,” which allows Chinese firms to invest in Iraqi infrastructure in exchange for oil supplies.
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