Huge investments and strategic projects .. Why is China seeking to expand in Iraq(Translated)

Admin
July 15, 2021

Chinese companies are among the largest investors in the field of energy in Iraq, and this is mainly due to the large reserves in Iraq, in addition to the ease of oil extraction for these companies, according to the researcher specializing in trade and transport affairs, Dr. Ahmed Saddam Abdel-Sahib.

Abdel-Saheb shows to Al-Jazeera Net that the investment opportunities that became available after the withdrawal of US forces in 2011, generated a desire from the political blocs in Iraq to Chinese companies more than British, American and other companies.

He points out that the most important oil and gas fields that China is investing in Iraq are the Ahdab field in Wasit Governorate, whose production is managed by the China National Petroleum Corporation. The Chinese company “CNPC” (CNPC), which accounts for 50% of the total investment there.

And Abdul Sahib continues, “Also in the Rumaila field, China participates with British Petroleum (BP), which is Iraq’s largest field, in addition to other fields.”

Iraq’s exports of crude oil to China are estimated at 44% of the total oil exports, according to data from the oil tanker tracking website, and this reflects the strength of Chinese economic relations and the increasing need of China for oil, especially Iraqi crude oil.

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The trade and transport expert notes that the volume of trade exchange between Iraq and China exceeds $30 billion annually, because the Iraqi market is almost completely dependent on the Iranian market and the Chinese market, as Chinese goods are the least expensive for the Iraqi consumer and are suitable for all or most classes of consumers and their purchasing capabilities.

Abdul Sahib shows that China is trying to invest in housing and other fields, and the 2021 budget stated that Chinese companies intend to build schools and establish hospitals with a capacity of 100 beds per hospital, and there are other projects such as completing power stations and building 4,000 housing units in Maysan, and plans to build schools and housing complexes Within the oil-for-reconstruction deal.

In turn, a member of the Finance Committee in the Iraqi parliament, Representative Ahmed Hama Rashid, said that the Chinese-Iraqi agreement was frozen, and it was in the amount of 500 billion dollars, on the basis of Iraq delivering 100,000 barrels per day to China.

He expresses to Al-Jazeera Net his belief that the Chinese agreement was one of the reasons for the removal of Adel Abdul-Mahdi, and the introduction of the Al-Kazemi government, which froze the agreement