By John Lee.
Chinese oilfield services group Anton Oil reported a 16.2% decline in revenue from the Iraq market in the first half of 2026, with regional disruption cited as the primary cause.
Revenue from Iraq fell to approximately RMB 1,212.4 million from RMB 1,447.2 million in the same period of 2025, representing 45.2% of the Group's total revenue. New orders from Iraq reached approximately RMB 1,243.4 million, a decrease of 50.5% year on year. The Group attributed the decline to the expiry and non-renewal of its integrated oilfield management contract at the Majnoon oil field, as well as delays in tendering activity linked to volatility in the Middle East.
Restrictions on passage through the Strait of Hormuz disrupted Iraq's crude oil exports and prompted certain oilfields to adjust production plans, temporarily affecting the pace of operations, the commencement of new projects, and tendering activity.
The Majnoon contract, under which the Group managed the oilfield for nearly eight years, was not renewed upon expiry during the reporting period.
On the Dhufriyah oilfield, drilling of the first exploration well commenced in February 2026 and was completed in July. Encouraging oil and gas indications were identified across multiple formations. The sixth Joint Management Committee meeting was held in Baghdad, with both parties reaching agreement on subsequent drilling arrangements, surface engineering plans, and the project implementation schedule.
The Group also deployed a self-developed digital twin platform for smart stations and plants at an oilfield in Iraq during the period. Other technologies applied included coiled tubing stimulation, sand control and water shutoff, and electric submersible pumps.
Cash flow from operating activities for the six months ended 30 June 2026 was a net outflow of approximately RMB 64.0 million, a decrease of RMB 434.0 million compared with the same period of 2025, reflecting delays in payment collection from Iraq market projects.
(Source: Anton Oil)
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