The Chinese hydrocarbon company CNOOC has signed an Exploration, Development & Production Contract (EDPC) with Iraq's state-owned Midland Oil Company to explore for oil and gas at the Block 7 in Iraq. CNOOC Africa Holding, a subsidiary of CNOOC, will hold 100% interests and be the operator for the 6,300 km2 block, located in the Diwaniyah province, central Iraq. Under the deal, the first stage of the exploration period is set to last three years.
The signed deal confirms CNOOC’s winning bid for the block, which was first announced in the summer of 2024. In August 2024, Iraq’s Oil Ministry had signed initial deals for 13 oil and gas exploration blocks and fields, which are expected to increase the country’s production by 750 kb/d of crude oil and 850 mcf/d (8.8 bcm/year) of natural gas. In addition to CNOOC, Chinese companies ZhenHua, Anton Oilfield Services, Sinopec and Geo-Jade also won bids to develop oil and gas fields in Iraq.
In 2023, Iraq produced over 10 bcm of natural and 212 Mt of crude oil. The country’s proved reserves stood at 3,714 bcm for gas and 19,730 Mt for oil in 2023.