China’s smaller, privately run oil firms are rapidly expanding in Iraq, investing billions in the country’s energy sector as global giants pull back. These independents—such as Geo-Jade Petroleum, United Energy, and Zhongman Petroleum—are targeting a combined output of 500,000 barrels per day by 2030, double their current production, according to company executives.
Attracted by Iraq’s new profit-sharing contract model and faster project timelines, these nimble firms are reshaping the investment landscape. Their lower costs, faster execution, and tolerance for high-risk environments make them an appealing partner for Baghdad, which is pushing to increase output to over 6 million bpd by 2029.
Geo-Jade, for example, is investing $848 million to revive the Tuba field and build a refinery and power plants. Meanwhile, Zhenhua Oil plans to double its output at Ahdab field, and Zhongman announced a $481 million investment in new blocks.
While Iraq welcomes this momentum, concerns remain. Critics cite overreliance on Chinese labor, limited technology transfer, and a lack of transparency. Still, the investments mark a shift in Iraq’s energy policy—one where private Chinese firms fill the void left by ExxonMobil and Shell.
Notably, Western players are returning too: TotalEnergies is investing $27 billion, while BP eyes $25 billion in Kirkuk.