Iraq’s China embrace not without risks
The Middle Eastern state’s welcome of Chinese investment is understandable, but not unproblematic
Majors—notably BP, Shell and ExxonMobil—are retreating from Iraq given its challenging financial environment, although not solely because of it. The country, which has struggled to attract new upstream investment from large firms in recent years, has come to rely on a shrinking number of companies to operate its largest fields. “All major investors are either looking for another market or for another partner,” says Iraqi oil minister Ihsan Ismael. Why does this matter? The twin shocks of low oil prices and the Covid-19 pandemic caused Iraq’s GDP to contract by 10.4pc in 2020 and led to a painful currency devaluation. With oil export revenues accounting for over 90pc of the state budget and I
![](/images/white-fade.png)
Also in this section
26 July 2024
Oil majors play it safe amid unfavourable terms in latest oil and gas licensing bid rounds allowing Chinese low-ball moves
25 July 2024
Despite huge efforts by India’s government to accelerate crude production, India’s dependency shows no sign of easing
24 July 2024
Diesel and jet fuel supplies face a timebomb in just four years, and even gasoline may not be immune
23 July 2024
Rosneft’s Arctic megaproject is happening despite sanctions, a lack of foreign investment and OPEC+ restrictions. But it will take a long time for its colossal potential to be realised