Baghdad (IraqiNews.com) – PetroChina, China’s largest oil and gas producer, reported a drop in oil production in Iraq during the first half of 2026 because regional conflicts forced temporary closure of plants.
The Chinese firm’s total crude oil output fell 2.8 percent to 462.9 million barrels in the first half of 2026, driven primarily by a 14.2 percent drop in overseas production.
Following the onset of the US-Iran geopolitical crisis, forced project shutdowns and operational disruptions at the company’s main Middle Eastern oilfields, particularly in Iraq, resulted in this rare supply contraction.
Despite the fall in output, the energy giant had a highly profitable first half. Net profit increased 22 percent on an annual basis to 103.94 billion yuan ($14.65 billion), surpassing the 100 billion yuan mark in a half-year period for the first time.
PetroChina executive director Ren Lixin said that Middle Eastern projects are gradually restarting, with regional output returning to over 90 percent of pre-conflict levels, according to South China Morning Post.
The Chinese company has major stakes in some of the world’s largest oil fields, especially in southern and southeastern Iraq.
PetroChina’s biggest projects in Iraq include the West Qurna-1 oil field, Halfaya oil field, Rumaila oil field, and al-Ahdab oil field.
