Iraq cooperates with Chinese companies on intensive oil, gas development projects


(MENAFN) The Iraqi News Agency disclosed a significant development in Iraq's energy sector as the nation inked a pivotal agreement with the Chinese Hualu Engineering Company on Wednesday. The accord aims at the comprehensive enhancement of the Al-Faw refinery, boasting a substantial capacity of 300,000 barrels per day. This ambitious project is delineated into two phases, poised to include the construction of a robust petrochemical complex capable of yielding three million tons annually. Moreover, integral to the initiative is the establishment of a formidable electricity generation station with an impressive capacity of two thousand megawatts.

Hualu Engineering Company, a subsidiary under the umbrella of the esteemed China Chemical Engineering Corporation (CNCEC), emerges as the latest Chinese entity to forge a partnership with Iraq in its oil and gas sector. This collaboration follows hot on the heels of another landmark agreement where the Chinese United Energy Company (UEG) secured the rights for the development of the strategically situated Al-Faw oil and gas field, nestled within the Iraqi-Kuwaiti-Iranian border region.

Notably, Chinese corporations have emerged as pivotal players in Iraq's quest for energy expansion, securing exclusive exploration licenses in a recent bidding round held on May 11 and 13. During this event, Chinese firms clinched licenses encompassing ten oil and gas fields across Iraq's resource-rich terrain. The enduring collaboration between Iraq and Chinese firms underscores a strategic alignment aimed at unlocking the vast potential of Iraq's hydrocarbon energy resources, setting the stage for significant strides in the nation's energy landscape.

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