Yerevan Saeed, China's Rise in Iraq's Energy Sector: From Newcomer to Dominant Player
In a new co-authored issue paper for the Arab Gulf States Institute in Washington, SIS Barzani Scholar In-Residence and director of the Global Kurdish Initiative for Peace Yerevan Saeed examines China's rise in Iraq's energy sector.
Chinese energy companies emerged as dominant players in the Iraqi Oil Ministry鈥檚 May licensing rounds to auction 29 oil and gas blocks, securing聽10 out of 13 oil and gas blocks. Shell was the only Western international oil company to participate, and it did not win any bids. Other Western and U.S. international oil companies showed no interest in bidding, despite improved fiscal terms of the contracts. The resounding success of Chinese firms underscores a significant shift, solidifying Beijing鈥檚 already strong position in Iraq鈥檚 energy landscape and presenting a substantial challenge to Washington鈥檚 strategic position in the region.聽
The increasing Chinese dominance comes amid a seemingly contradictory development: In April, Iraqi Prime Minister Mohammed al-Sudani signed numerous memorandums of understanding with U.S. energy companies, particularly focusing on gas development and power generation. This focus aligns with Washington鈥檚 strategic goals of diminishing Iran鈥檚 political influence in Iraq and, by extension, blunting China鈥檚 push to dominate Iraq鈥檚 hydrocarbon sector. The stark contrast between the memorandums of understanding signed by U.S. companies and the contracts awarded to China demonstrates a significant聽mismatch聽between the aspirations of Washington and the realities of the investment environment in Iraq.
Read the full paper .