China’s CNOOC Signs Contract to Develop Iraq’s Block 7 Oil Field
China National Offshore Oil Corporation (CNOOC) Ltd has announced a landmark contract with Iraq’s state-owned Midland Oil Company to spearhead exploration, development, and production at Iraq’s Block 7 oil field. This partnership underscores China’s expanding energy footprint in the Middle East.
The contract grants CNOOC Africa Holding Ltd., a fully-owned subsidiary of CNOOC, 100% operational rights over the 6,300-square-kilometer Block 7 site, situated in Diwaniyah province in central Iraq. Under the terms of the new Exploration, Development & Production Contract (EDPC), CNOOC is set to lead all operations in the block, marking a notable addition to its portfolio in Iraq.
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This agreement follows CNOOC’s winning bid for Block 7, part of Iraq’s recent licensing round that introduced a profit-sharing model rather than the traditional technical service agreements. This policy shift has drawn interest from international companies and aims to create a more mutually beneficial structure for Iraq’s oil industry.
The initial exploration phase of the contract will span three years, although CNOOC has not disclosed a specific starting date. CNOOC, one of the major international players in Iraq’s oil industry, already holds substantial operations in Iraq, particularly focused on the Maysan field in the country’s southeast.
This latest partnership between China and Iraq strengthens CNOOC’s position in the region and highlights Iraq’s push for enhanced international cooperation in the energy sector amid evolving global energy demands.
