How does China's dominance in Iraq affect Iraq's energy sector?

China’s dominance in Iraq’s energy sector creates political interdependence between the two countries. China is the world’s largest crude oil importer, importing more than 11 million barrels daily. Almost half of this import need is supplied from Middle Eastern countries, although Russia is the single-largest supply of crude oil to China.

Does China buy oil from Iraq?

China expands its energy footprint The oil trade is the central pillar of the bilateral relationship, with China accounting for about 30% of Iraq’s oil exports. China’s purchases of oil from Iraq, its third-largest supplier, increased by nearly 50% in 2022 over the previous year, part of an overall surge in trade.

Does China have energy ties with Iraq?

Yet China’s energy ties with Iraq extend well beyond trade in crude oil. China’s leading state-owned energy enterprises have established a strong foothold in Iraq’s upstream, midstream, and downstream market.

Can China exploit oil and gas fields in Iraq?

China, which was already one of the leading operators of oil and gas fields in Iraq, has won the rights to exploit 10 more oil and gas fields in the recent licensing tenders. Iraqi Oil Minister Hayan Abdulghani emphasized that the agreements will increase Iraq’s proven oil reserves to 160 billion barrels.

Can China build a new oil refinery in Iraq?

Iraq’s Ministry of Oil (MoO) recently awarded contracts to a Chinese consortium to develop a refinery in the Dhi Qar Governorate and to state-owned China National Chemical Engineering Co. (CNCEC) to build a new integrated refining and petrochemicals complex — to be fully funded by the Chinese government — on the al-Faw Peninsula.

How important is China to Iraq's oil policy?

The fact that Chinese companies have shown precise determination in front of the Gulf capital and obtained the licenses of these oil and gas fields is critical in showing China’s importance to the oil policy in Iraq.