China China National Engineering International Engineering Co., Ltd. (CAMCE) successfully won the bid for the front-end engineering design (FEED) project of the Siba gas field in Iraq on August 15, which is another important breakthrough made by Chinese companies in the Iraqi energy market. The project will be led by Kuwait Energy, and China International Technical Intelligence Cooperation (IPPR), a subsidiary of China National Engineering International, will be responsible for providing a full set of technical services including geological exploration, feasibility studies, master planning, etc.

This bid underscores the growing influence of Chinese companies in Iraq's oil and gas sector. According to statistics, Chinese companies currently control about two-thirds of Iraq's oil and gas resources, manage nearly 24 billion barrels of crude oil reserves, and produce an average of 3 million barrels per day. This trend became even more pronounced after ExxonMobil withdrew from the Sigurna-1 oilfield in 2024 and PetroChina took over operations.

It is worth noting that Chinese companies are accelerating to fill the gap in the market against the backdrop of US companies gradually withdrawing from the Iraqi market due to security concerns. S&P Global data shows that Chinese companies have shown greater resilience in dealing with risks in the Iraqi market. Last month, the Iraqi government just signed a multi-billion dollar agreement with Chinese company Intercontinental Oil and Gas to develop the Tuba oil field.

As a listed company under China National Machinery Industry Group, China National Engineering International has been deeply involved in the Belt and Road construction project since its listing in 2006. This bid not only consolidates its technical advantages in the field of energy engineering, but also injects new impetus into China-Iran economic and trade cooperation. In the first half of 2024, bilateral trade between China and Iran has reached a record high of $27 billion.

Analysts pointed out that in the context of the reshaping of the global energy landscape, Chinese companies are rewriting the energy map of the Middle East with their technical strength and strategic patience. However, how to balance commercial interests with regional stability is still an important issue that needs to be faced in the future.(This article is from the official website of Jiandao www.seetao.com it must not be reproduced without permission, otherwise it will be investigated, please indicate Jiandao.com + original link for reprinting) See Dao.com International Column Editor/Gao Xue