Iraq clinches major China oil deal as exports to Asia hold steady

Shafaq News/ Iraq secured the world’s second-largest energy deal in May through an agreement with China, while crude exports to top Asian buyers remained broadly stable, official and industry data showed on Wednesday.

The South Basra Integrated Project will raise output at the Tuba oil field from 20,000 to 100,000 barrels per day (bpd) and includes a 200,000-bpd refinery, a 620,000-ton petrochemical plant, a 520,000-ton fertilizer facility, and two power stations with a combined capacity of 1,050 megawatts.

The deal follows recent high-profile investments, including a BP-led initiative to develop four oil fields in Kirkuk.

In February, Iraq and Saudi Arabia led global crude deals, ranging from export contracts to asset acquisitions. Analysts view the streak of agreements as a bid to monetize energy assets and diversify Iraq’s economy.

Despite volatility in global markets, Iraq’s crude shipments to Asia have also remained steady. Customs data showed China imported 1.11 million bpd in May, up 22,000 bpd from the same period last year. India followed with 931,000 bpd, down slightly from 959,000 bpd year-on-year.

Most Iraqi crude is exported by sea, with an additional 15,000 bpd trucked to Jordan under a bilateral deal covering up to 450,000 barrels per month.