China Iraq Agreement

Although China avoids presenting itself as a substitute for the United States, particularly in Iraq, events indicate that it is ready to fill the void on which Shiite forces insist on the total withdrawal of Iraq from the United States in favor of a strategic relationship with China. This is the only logical explanation for Understanding Iraq`s enthusiasm to link Iraq to large, long-term credit agreements with China, although it [Iraq] still has comfortable reserves of strong currency liquidity and huge oil and gas reserves, which can serve as collateral for more balanced and diversified agreements with world powers rather than falling into a potential Chinese credit trap. [37] « China, Iraq ink 3b oil deal, » Middle East and North Africa Financial Network, 28 August 2008 [LexisNexis]. In 2011, Iraqi oil officials announced that CNPC had started production with an expected yield target of 40,000 barrels per day (bpd) at the Al Adhab oil field. See « China, Iraq Boost Ties, » International Oil Daily, July 20, 2011; « Iraq approves China`s drilling contract for West Qurna Two oil fields: sources, » Reuters, November 27, 2018, www.reuters.com/article/us-iraq-oil-drilling/iraq-approves-china-drilling-deal-for-west-qurna-two-oilfield-sources-idUSKCN1NW1MK; « Iraq has approved China`s drilling contract for West Qurna Two oil field: Sources, Reuters, November 27, 2018, www.reuters.com/article/us-iraq-oil-drilling/iraq-approves-china-drilling-deal-for-west-qurna-two-oilfield-sources-idUSKCN1NW1MK; China Sinopec buys Addax for $8.27 billion, » Reuters, June 24, 2009, www.reuters.com/article/us-addax-sinopec/chinas-sinopec-to-buy-addax-for-c8-27-billion-idUSTRE55N59I20090625; « CNOOC Ltd. announces the signing of the technical service contract for the Missan oil fields in Iraq? Cnoocltd.com, May 17, 2010, www.cnoocltd.com/art/2010/5/17/art_8381_1129771.html?bzriqnrixbtkufuv; Guy Chazan, « PetroChina buys Exxon`s share of the Iraqi oil field, » Financial Times, November 28, 2013, www.ft.com/content/19c128a2-5818-11e3-a2ed-00144feabdc0; « Iraq awards $348 million in drilling contracts for Maysan, » Reuters, September 27, 2013, www.reuters.com/article/iraq-energy/iraq-awards-348-mln-of-drilling-deals-for-maysan-oilfields-idUSL6N0GZ3X620130903; and « Iraq Awards 348M of Drilling Deals for Maysan, » RigZone.com, 5 September 2013, www.rigzone.com/news/oil_gas/a/128807/iraq_awards_348m_of_drilling_deals_for_maysan_oilfields/; Du Juan, « CNPC completes Iraq pipeline despite strife, » China Daily, August 12, 2014, www.chinadaily.com.cn/business/2014-08/12/content_18291997.htm. Details of the project are available at cpe.cnpc.com.cn/encpebj/POilc/201901/47cd8670edea46b992b66a3dff71312b.shtml; China Petroleum Engineering Construction Corporation. Wil Crisp, « China Petroleum signs up for Iraq gas megaproject, » Middle East Economic Digest (MEED), 13 August 2019; and Mue Xuequan, « Iraq signs a contract with the Chinese oil company to complete 80 wells in Iraq, » Xinhuanet.com, September 7, 2019, www.xinhuanet.com/english/2019-09/07/c_138371964.htm. 2. Supporters: This team considers the agreement as one of the most important signed by the modern Iraqi state in the second half of its age. They see them as a key lever for economic progress and national development after decades of successive wars.

Abdul Mahdi has signed eight economic and trade agreements with China, including one that distributes revenues of 100,000 barrels of oil per day to China for infrastructure projects in various Iraqi provinces over a 20-year year.