On August 15, 2025, significant progress was made in the Xiba gas field project in Basra Province, Iraq. China International Engineering Co., Ltd. has successfully obtained the Front end Engineering Design (FEED) contract awarded by Kuwait Energy Company, marking another breakthrough for Chinese enterprises in the Iraqi energy market. Against the backdrop of the reshaping of the global energy landscape, this cooperation has attracted widespread attention from the international community.

Project Overview and Technical Content

The Siba gas field is located in Basra Province in southern Iraq and is an important natural gas development project in the country. It is operated by a consortium led by Kuwait Energy Company. This contract is specifically executed by China International Technology Intelligence Cooperation Company, a subsidiary of China National Engineering Corporation Limited. The work includes comprehensive technical services such as geological exploration, feasibility study, overall planning, functional zoning, architectural design, and cost assessment. It will lay an important foundation for the construction of the gas field operation center.

Strategic layout of Chinese enterprises in the energy sector in Iraq

In recent years, Chinese companies have continued to expand their influence in the oil and gas sector in Iraq. Data shows that Chinese companies have participated in the development of about two-thirds of Iraq's oil and gas resources, managing nearly 24 billion barrels of crude oil reserves with a daily production of 3 million barrels. In 2024, China National Petroleum Corporation (CNPC) will take over the operation rights of the West Gurnal-1 oil field in Iraq, which ExxonMobil withdrew from; In July of the same year, the Iraqi government signed a development agreement for the Tuba oil field with China Intercontinental Oil and Gas Corporation, planning to increase production to 200000 barrels per day.

Current situation of China Iran economic and trade cooperation

Despite facing challenges, China's economic and trade cooperation with Iraq continues to deepen. China has become Iraq's largest trading partner and crude oil importer, with a bilateral trade volume of $27 billion in the first half of 2024, expected to reach a historic high for the whole year. This time, China National Engineering Corporation won the bid for the Xiba gas field project, further consolidating the technological and service advantages of Chinese enterprises in the energy field in Iraq.

Against the backdrop of the reshaping of the global energy market landscape, the strategic layout of Chinese enterprises is profoundly influencing the energy industry ecology in the Middle East. However, how to maintain sustainable development amidst geopolitical risks remains an important issue that Chinese companies need to face. This cooperation not only demonstrates the technological strength of Chinese enterprises, but also opens up new possibilities for future energy cooperation between China and Iran. (This article is from the official website www.seetao.com of Jian Dao. Reproduction without permission is prohibited, otherwise it will be prosecuted. Please indicate Jian Dao website+original link when reprinting.) Jian Dao website infrastructure engineering column editor/Yang Beihua