China is becoming more involved in Iraq, but both sides are still cautious of the other
Iraq’s China embrace not without risks
The Middle Eastern state’s welcome of Chinese investment is understandable, but not unproblematic
Majors—notably BP, Shell and ExxonMobil—are retreating from Iraq given its challenging financial environment, although not solely because of it. The country, which has struggled to attract new upstream investment from large firms in recent years, has come to rely on a shrinking number of companies to operate its largest fields. “All major investors are either looking for another market or for another partner,” says Iraqi oil minister Ihsan Ismael. Why does this matter? The twin shocks of low oil prices and the Covid-19 pandemic caused Iraq’s GDP to contract by 10.4pc in 2020 and led to a painful currency devaluation. With oil export revenues accounting for over 90pc of the state budget and I
Also in this section
5 May 2025
The country is seeing a notable increase in petroleum product retail outlets, with private operators gaining market share
2 May 2025
Fast-tracking US project approvals and increased trade pressures have already changed the LNG landscape since Trump came to office, with further transformation ahead
2 May 2025
Peru’s state-owned hydrocarbons agency has launched the search for new investors for Offshore Block Z-69, a high-potential asset in the prolific Talara Basin.
2 May 2025
The scars of the Russia crisis have accelerated Europe’s push to wean itself off gas dependence as the growing globalisation of LNG becomes a double-edged sword
