Baghdad (IraqiNews.com) — Iraq inked a seismic exploration contract with China’s Sinopec on Thursday, highlighting Baghdad’s aim of luring investment from both Chinese and American energy corporations as Prime Minister Ali Al-Zaidi traveled to the United States to win significant oil agreements.
Iraq’s state-owned Oil Exploration Company (OEC) inked the deal, which includes a two-dimensional seismic survey program in Muthanna province as part of Iraq’s Fifth Licensing Round Supplement and Sixth Licensing Round, according to the Oil Ministry.
The signing occurred as Al-Zaidi met with Chevron officials in Houston, where the US oil giant is set to sign preliminary agreements covering the West Qurna 2 and Nasiriyah oilfields, as well as discuss future investments, including export infrastructure.
According to the Oil Ministry, the Sinopec deal is part of Iraq’s strategy to enhance exploratory efforts by using sophisticated seismic technology to improve geological evaluations, locate new hydrocarbon resources, and create technical data for future oilfield development.
The deal will improve Iraq’s exploration capabilities while also aiding the government’s overarching goal of growing oil and gas reserves and long-term production.
According to the Oil Exploration Company, collaboration with Sinopec would also assist in the transmission of technical skills and new exploration technology to Iraqi engineers, as well as the enhancement of local upstream capabilities.
The pact demonstrates Iraq’s efforts to preserve partnerships with both Western and Chinese energy businesses while seeking foreign investment to grow production, modernize infrastructure, and find new oil and gas resources.
While al-Zaidi has spent the week in Washington and Houston encouraging further US investment, Chinese businesses continue to be the top investors in Iraq’s energy industry, with Beijing directing the construction of many key oilfields.