A great deal of focus has been given to the Western Oil companies developing Iraq’s supergiant oilfields, so much so that the significant role China is playing in the country’s oil future can be marginalised.
According to Chinese oil traders canvassed by Reuters, China is set to lift 500,000 barrels per day from Iraq’s southern oil fields, an increase of 50% over current levels.
PetroChina, CNOOC and CNPC have led the way on production, at the Halfaya (37.5%), Missan (63.75%) and Rumaila (37%) fields respectively. Their contributions are now being reflected in an increasing share of Iraqi oil making its way to Chinese refineries.
The previously neglected Halfaya field is slated to see production increased from 3,100 bpd to 535,000 bpd, Missan from 100,000 bpd to 450,000 bpd and Rumaila is to rise from 1.24 million bpd to 2.85 million bpd.
According to BP’s latest Annual Statistical Review, Chinese energy consumption leapt 11.2 in 2010, as China surpassed the USA as the world’s leading energy consumer. Its burgeoning demand for oil has seen a drive to source supplies from diverse markets in a bid to reduce reliance on Saudi Arabia and Iran, with China responsible for the largest growth in non-OPEC oil production last year.
