Iraq-China oil partnership facilitates production as Iraq is looking forward towards a new chapter as CNPC as lead contractor in one of the projects.
Iraq has benefited from a strong oil and gas partnership with China and looks forward to a new chapter as China National Petroleum Corporation (CNPC) replaces ExxonMobil as the lead contractor for the West Qurna 1 oilfield, officials said.
On New Year’s Day, around 200 guests gathered for the groundbreaking ceremony of the project’s new operational headquarters in Basra, Iraq’s second-largest city and key port hub.
Hayan Abdul-Ghani, Iraq’s deputy prime minister for energy affairs and oil minister, stated via video that the field now produces 550,000 barrels daily. He praised CNPC for creating ample job opportunities and contributing to local communities.
West Qurna 1, located roughly 50 kilometers northwest of Basra, is one of Iraq’s most significant oilfields, with an annual crude oil output exceeding 25 million metric tons and recoverable reserves of more than 22 billion barrels.
Chen Mingzhuo, general manager of the project, emphasized that leading operations at West Qurna 1 aligns with the vision of Chinese and Iraqi leaders, fostering deeper economic ties and supporting Iraq’s economic growth.
Iraq, heavily reliant on oil exports for 90 percent of its revenue, sees the establishment of the new operation center as vital for increasing production.
The new complex will span 800,000 square meters with a construction area of 50,000 square meters. It will be built in two phases, with the first phase set for completion in 2027 and the second in 2028. The initial phase will accommodate 540 employees, housing production command centers, a clinic, a canteen, and other essential facilities.
CNPC completed the transition across seven fields within six months, with West Qurna 1 achieving an average annual production of 541,000 barrels per day in 2023, peaking at 568,000 barrels on July 28.
The workforce at West Qurna 1 consists of 2,569 employees from over 10 countries, including 76 from China, with a strong emphasis on collaboration. Guan Lei, from the maintenance department, described the teamwork as three interconnected gears—Chinese, international, and local workers—working in harmony for efficiency.
In 2024, four key projects are expected to boost production capacity by 200,000 barrels daily. Cai Kaiping, the subsurface manager, projects that production will reach 800,000 barrels per day by 2028, 1 million by 2030, and 1.2 million by 2035.
Environmental progress has been a hallmark of CNPC’s operations. On Dec. 17, the DS6 degassing station eliminated most of the “black smoke” caused by burning associated gas, a change welcomed by locals.
Hasan Hanoon, a local engineer, noted the significant improvements under CNPC’s management, expressing admiration for China’s efficiency and commitment to sustainable development. He acknowledged that the Iraq-China partnership has improved livelihoods and opened new possibilities for future growth, reflecting the principles of the Belt and Road Initiative.
