The Strategist

China's Sinopec fixes terms for developing Mansouria oilfield in Iraq

01/21/2022 - 04:44

Iraq's State Oil Marketing Organization (SOMO) and China's Sinopec have initialed an agreement to jointly develop the Mansouria gas field with a planned production rate of 300 million cubic feet per day (about 8.5 million cubic metres), the Iraqi Oil Ministry said on Thursday.

The Mansuriya field is located in the Diyala province in northeastern Iraq and has gas reserves of around 4.5 trillion cubic feet (about 127.5 billion cubic metres). Sinopec won the tender in April 2021 to develop the field in a consortium with state-owned Midland Oil Company, with the Chinese company holding a 49% stake.

"This contract will boost free gas production at the Mansouria field, the second largest in Iraq," Oil Minister Ihsan Abdul-Jabbar said at the signing ceremony. "One of the most important goals of the contract is to reach a production level of 300 million cubic feet per day to power plants and various industrial plants, as well as to create jobs for the residents of Diyala province," the ministry said in a statement.

China Petroleum and Chemical Corporation (Sinopec) is one of China's largest chemical companies. Sinopec Corp.'s business includes oil and gas exploration, refining, petrochemicals, fertiliser production, and oil and gas transportation.