Iraq recently announced that China's Zhenhua Oil has discovered a new oil field in the al Qarnain block of the southwestern province of Najaf, with an estimated reserve of 8.835 billion barrels. The core well Shams-11 produces 3248 barrels of light crude oil per day.

The discovery south of the Himalayas comes from two river basins.

The Shams-11 well drilled by Zhenhua Oil in the al Qarnain block of Najaf province in southwestern Iraq is currently in the early stages of testing, with a daily production of 3248 barrels of light crude oil. Iraqi Oil Minister Hayan Abdul Ghani personally met with the Zhenhua Oil delegation and confirmed this discovery.

This is not a small oil field.

What does 8.8 billion barrels mean

The estimated reserves of 8.835 billion barrels account for approximately 8% of Iraq's total proven reserves. As a reference, Iraq currently has proven reserves of approximately 145 billion barrels, ranking fifth in the world. The al Qarnain block covers an area of 8773 square kilometers and is adjacent to the Saudi border. Its geological conditions are highly similar to those of the eastern provinces of Saudi Arabia, and it is regarded by the industry as the next Rubhali.

The core well has just started testing, and producing 3248 barrels per day is just the starting point. Based on the average stable daily production of 5000 to 8000 barrels per well in Iraq, Shams-11 still has significant room for increased production. More importantly, the vast area of 8773 square kilometers means that there may be more surprises hidden underground.

Zhenhua Oil's Iraq Chess Game

The al Qarnain block was awarded to Zhenhua Oil in the fifth round of supplementary bidding and the sixth round of formal bidding in Iraq in 2024. At present, Zhenhua Oil holds exploration rights for two blocks, al Qarnain and Abu Khema, and has established a firm foothold in the upstream of Iraq.

According to the latest OPEC data, Iraq's daily crude oil production in 2025 is about 4.3 million barrels, with approximately 500000 barrels per day of idle production capacity. The Iraqi government is accelerating the entry of foreign investment into the upstream, with the goal of increasing daily production to 6 million barrels by 2030. Two blocks of Zhenhua Oil happen to be stuck on this expansion route. Keywords: Zhenhua Oil, Iraq

Why now

The timing is crucial. Iraq is intensively advancing a new round of oil and gas tenders, with plans to release multiple mega blocks by 2025. The international oil price is currently above $70 per barrel, with Brent crude oil at around $74, providing sufficient economic driving force for upstream exploration investment.Editor/Cheng Liting