According to energy analytics company OilX, China’s January crude oil imports averaged 11.12 million barrels per day (bpd). This was an 18 percent increase when compared to the previous month. China was also the world’s largest oil buyer in 2020 as the Asian superpower filled up its reserves with cheap oil amid the pandemic.

Last year, it was reported that Chinese state-owned China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation (CNOOC) are interested in ExxonMobil’s operating stake in the West Qurna 1 oil fields in Iraq. West Qurna 1 is one of the largest oil fields in Iraq.

During the same period, Venezuela resumed sending crude oil shipments to China despite US sanctions. China is also the biggest buyer of Venezuelan crude. Previously, Venezuela sold oil to China via ship-to-ship transfers at sea, however, Venezuela started delivering crude directly to Chinese shores.

In October, China’s crude oil imports registered a 6.5 percent year-on-year decline since April to 10.06 million barrels per day (bpd), as refiners slowed down on their purchases amid a drop in throughput and less import quotas.

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Exxon owns a 32.7 percent stake in the Exxon oil field and it could be worth $500 million. However, it is currently uncertain whether a deal is in place or not. Also, geopolitical factors could lead to a no-deal situation in this regard. Previously, Exxon sold 25 percent of its stake in the oil field to PetroChina and 10 percent to Pertamina.

Iraq exported an average of 2.876 million barrels of oil per day (bpd) in October, up by more than 200,000 bpd from September, according to its oil ministry. This has helped the country to increase its oil revenue. Iraq’s economy heavily depends on oil revenue and the current oil crisis did take a toll on the country’s financial status.

Last month, it was reported that Iraq would be among one of three countries  that would oppose a proposal by the Kingdom of Saudi Arabia and Russia to roll over the 7.7-million barrels per day production cuts, instead of relaxing them by 2 million barrels per day from January, in light of the current oil price crisis.

Earlier this year, it was reported that China is planning to increase its production of oil and gas in 2020 by 1 percent, which equals to 3.85 million barrels per day. The country will also reduce the share of coal in its primary energy mix to 57.5 percent from 57.7 percent the previous year.

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According to the ministry, Iraq exported 2.77 million bpd from the southern Basra terminals, up from 2.5 million bpd the month before. Oil shipments from Kirkuk through Ceyhan averaged around 92,484 bpd in October. Last month, local media reported that Iraq’s Oil Minister Ihsan Abdul Jabbar expects crude prices to remain at around $41 to $42 a barrel this year before rising to $45 in the first quarter of 2021.

Recently, it was also reported by Reuters that Kuwait, the UAE and Iraq are debating whether to agree to extend oil output cuts into 2021 as the output is huge  for them to sustain. However, the oil minister had dismissed the report citing it as baseless.

He told the media, “Iraq welcomed the production adjustment decision reached in April 2020 by all participating countries. Iraq is very keen on achieving stability and balance on the international oil market.”

As a result of a price war between Saudi Arabia-led OPEC and Russia and the coronavirus pandemic, oil prices as well as demand have significantly depleted this year. It was reported by local media last month that Iraq plans to launch a new licencing bid round for Mansuriya gas field  following the cancellation of a contract with a group of companies led by Turkey’s state-owned TPAO. The ministry has invited international companies to participate in the new licencing round.

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Iraq is under increasing pressure from the US to ramp up gas production in order to cut down on its imports of electricity and gas from Iran, which has been under US sanctions since 2018.

Iraq’s oil ministry said in a statement that talks with Total revolve around investments in a gas project west of Baghdad and another in the southern city of Basra.

In the statement, the oil ministry also said that Iraq plans to capture an additional 1.2 Bcf/d of flared gas by the end of 2023. Iraq, which has 132 Tcf of gas reserves, currently captures 1.5 Bcf/d of associated gas and wants to boost that figure to 2.5 Bcf/d by the end of 2023.

It is reported that Russia-based oil giant Lukoil is planning to develop new oilfield projects in Iraq amid depleting prices and demand due to the coronavirus pandemic.

Recently, Iraqi Oil Minister Ihsan Abdul Jabbar said at a virtual conference that oil prices will recover during the second quarter of 2021 which will help Iraq and its oil industry to increase its production capacity.

“I think quarter two, 2021 will be more attractive to every aspect of our business,” Jabbar said.

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There are several oil fields in the bordering area of the two countries. ERC Equipoise will study the Rumaila South, Rataqa and Safwan Al Abdali oil fields.

The agreement was signed by Kuwaiti Ministry of Oil Sheikh Talal Nasser Al-Sabah and the Iraqi Oil Ministry’s petroleum contracts and licencing directorate chief Abdul Mahdi Al -Ameedi in the Jordanian capital of Amman.

Abdul Mahdi Al-Ameedi told the media that, “ERC Equipoise will provide us with all information related to oil reserves and other information, which paves the way for joint investment between Iraq and Kuwait.”

His counterpart, Sheikh Talal Nasser Al-Sabah said that the agreement was the result of six years of hard work between the two nations.

The agreement also intends to improve the relationship between the two countries, especially when it comes to joint oil production.

Both countries are members of the Organization of the Petroleum Exporting Countries. Tensions between the two nations have long escalated with regards to production from cross-border oil fields. Prior to Iraq’s invasion of Kuwait in 1990, Iraq accused Kuwait of drilling wells and pumping oil in Iraqi territory. However, Kuwait denied the allegation.

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