Russian state media outlet Sputnik News reported on May 22 that Iraq’s government has entered into a significant partnership with Chinese and local Iraqi firms to develop the country’s first comprehensive energy complex in southern Basra. The Basra Oil Company signed contracts with Hilal Basra and China Continental Oil & Gas Co. Ltd. to establish an integrated project encompassing refinery, petrochemical, and power generation facilities.
Iraqi Oil Minister Hayan Abdul Ghani described the initiative as “a qualitative leap in developing the nation’s oil treasures and supporting the national economy.” The ambitious project aims to dramatically expand the Tuba oil field’s production capacity from 20,000 barrels per day to 100,000 barrels daily.
The development plans include constructing a high-quality refinery with a capacity of 200,000 barrels, a petrochemical plant producing 620,000 tons annually, and a fertilizer factory with an annual output of 520,000 tons. The energy infrastructure component features two power stations: a 650-megawatt thermal power plant whose surplus electricity will supply the national grid, and a 400-megawatt solar power facility.
This deal reflects broader trends in Chinese investment patterns in strategic regions. Separately, Hungary has emerged as China’s largest European investment destination, accounting for 31% of China’s total direct investment in Europe, primarily driven by capital-intensive greenfield projects.
While Chinese electric vehicle investments in Europe have garnered attention, they represent a relatively small portion of overall Chinese direct investment in the continent. Although China’s European investment is expected to grow in 2025, the slowing pace of electric vehicle expansion may impact long-term investment prospects in the region.
The Iraqi project represents a significant step in the country’s efforts to modernize its energy sector and diversify its economic partnerships.
Source: Sputnik News, May 22, 2025
https://sputniknews.cn/20250522/1065623403.html