Related Articles
China is becoming more involved in Iraq, but both sides are still cautious of the other
Forward article link
Share PDF with colleagues

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



{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Letter from Singapore: Exploring Southeast Asia’s upstream mix
20 September 2021
The region’s upstream is not just a space for NOCs
Trinidad scrambles to prevent gas nosedive
17 September 2021
The country’s production has been freefalling for years, but expected startups will not be enough to avert further long-term losses
Nigerian reforms leave lingering doubts
16 September 2021
Questions remain over some specifics of the recently passed Petroleum Industry Bill and whether the reforms will be enough to jumpstart the country’s stalled upstream
Sign Up For Our Newsletter
Project Data
PE Store
Social Links
Social Feeds
Featured Video