Tag Archives | Zhenhua Oil

Chinese Firm to Double Production at East Baghdad Oil Field

By John Lee. Iraq's Minister of Oil, Hayan Abdul-Ghani (pictured), visited the East Baghdad oil field in Nahrawan and Suwayrah regions, expressing a commitment to increase crude oil production and invest in associated gas. The field currently produces 30,000 barrels per day, with a peak production goal of 40,000 barrels per day under the 2018 […]

Iraq "Cancels" Oil Deal with China's Zhenhua

By John Lee. Iraq has reportedly cancelled its $2-billion pre-paid oil supply agreement with Zhenhua Oil Company. Under a deal said to have been agreed in January, the state-owned Chinese company would pay Iraq in advance for a year's supply of oil. S&P Global Platts reported the following month that Iraq had "frozen" the deal, […]

Iraq "Pauses Oil Pre-Payment deal with China"

By John Lee. Iraq has reportedly "put on hold" it oil contract with China's Zhenhua Oil. The multi-billion-dollar agreement would have seen Zhenhua pre-pay Iraq's State Oil Marketing Organization (SOMO) for a regular supply of crude oil. Oil prices have risen significantly since the deal was struck. More here. (Source: S&P Global)

Chinese Consortium to Develop Dhi Qar Refinery

By John Lee. Iraq's Ministry of Oil has signed an outline agreement with a Chinese consortium for the development of the Dhi Qar refinery. A Ministry official described the signing of the initial principles agreement as an important step forward, and a prelude to the signing of the final investment contract for the Dhi Qar […]

Iraq signs $2bn Oil Deal with Chinese Firm

By John Lee. Iraq has reportedly awarded a Chinese company a deal which would see it paying $2 billion upfront for a year's supply of oil. Alaa al-Yasiri, General Manager of State Oil Marketing Organization (SOMO) told Iraqi News Agency (INA) that a Chinese company had won the contract ahead of a European company, but […]

Drilling approved at East Baghdad Oil Field

By John Lee. Iraq is to renew the contract to drill three new directional (non-vertical) oil wells in the East Baghdad oil field. The decision was approved at the meeting of the Iraqi Cabinet on Tuesday. The field is being developed by China's ZhenHua Oil. (Source: Govt of Iraq)

China "Set to Bail Out Iraq" with Oil Deal

By John Lee. Iraq is reportedly poised to sign a multibillion-dollar contract with China's ZhenHua Oil, in what Bloomberg describes as a bailout from Beijing. Under the deal, Iraq's cash-strapped government which will receive money upfront in exchange for long-term oil supplies. Click here to read the full article. (Source: Bloomberg)

Rockets strike near Chinese oil site in Iraq

By John Lee. Two rockets have reportedly struck near a Chinese oil facility south of Baghdad on Saturday. According to AP, there were no casualties. It cites an Iraqi army statement saying the rockets struck near a Chinese company in the Nahrawan area, and speculates that the company involved is┬áZhenHua, a subsidiary of the arms […]

SOMO "Close to JV" with China's Zhenhua

By John Lee. Iraq's State Oil Marketing Organization (SOMO) is reported to be close to a deal with China's state-run Zhenhua Oil to boost its crude oil sales. According to Reuters, China is under pressure to cut oil purchases from Iran, as the United States re-imposes sanctions on Tehran. More here. (Source: Reuters)

ZhenHua signs East Baghdad Deal

By John Lee. China's ZhenHua Oil [Jinhua] has signed a service contract to develop the southern part of the East Baghdad oil field. Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] said that the signature of the contract was significant for Baghdad because it is the first project in the capital. The development of the field […]