China’s Jereh Group has activated the exploration and production (E&P) contract for Iraq’s second-largest gas field, Mansuriya, marking a significant step in the development of the site, according to local reports. The Mansuriya field holds an estimated 4.5 trillion standard cubic feet (Tscf) of gas, with peak production expected to reach around 300 million standard cubic feet per day (Mmscf/d). However, it will begin operations at a more modest rate of 100 Mmscf/d within the next 18 months, as stated by a senior source closely connected to Iraq’s Oil Ministry.
The strategic importance of the Mansuriya field extends beyond its energy potential. Located in the heart of the Middle East, the field has long been considered vital by not only China but also the U.S., Russia, and Iran. This geopolitical significance has made it a key target for global powers vying for influence in the region.
Iraq’s Gas Fields and Shifting Alliances
Over the years, Iraq has aimed to develop its gas fields – including Mansuriya, Siba, and Akkas – under a unified development plan. This approach was intended to attract a single country to manage the fields through its domestic oil and gas companies, in cooperation with Iraq’s government. Turkey was initially seen as the frontrunner, with Baghdad viewing it as a bridge between East and West. Additionally, Turkey hoped to gain Iraq’s support for addressing Kurdish separatism within its own borders.
In 2011, Turkey’s state-run oil company, Turkiye Petrolleri Anonim Ortakligi (TPAO), signed an agreement to develop the Mansuriya field. The contract promised to increase production to a target of 325 Mmscf/d within ten years. However, after the rise of the Islamic State in 2014, TPAO suspended its operations. Even when Iraq’s Oil Minister, Jabar al-Luaibi, requested TPAO to resume development in 2017, the company refused. This reluctance led to a quiet agreement between Turkey and Russia, allowing Russian firms to take over gas field development in Iraq, according to sources.
At the same time, Russia had gained a foothold in Iraqi Kurdistan’s oil sector, positioning itself to expand its influence throughout Iraq. Russia’s involvement in these developments aligned with its broader geopolitical ambitions in the Middle East, where it sought to challenge U.S. influence by securing key oil and gas assets in the region.
Russia and China Divvy Up Iraq’s Gas Fields
In late 2017, Russia expressed interest in developing all three major gas fields in Iraq, including Mansuriya, Akkas, and Siba. Gazprom, Russia’s state-controlled energy giant, was particularly interested. However, before these plans could come to fruition, a shift in international alliances occurred. A cooperation agreement between Russian President Vladimir Putin and Chinese President Xi Jinping outlined a division of influence in Iraq and Iran, assigning China a greater role in both countries.
China’s strategic position in the Middle East was reinforced through agreements such as the 2019 “Oil for Reconstruction and Investment Agreement” and the expanded 2021 “Iraq-China Framework Agreement.” These deals solidified China’s role in Iraq’s energy sector. Similarly, the 2020 “China-Iran Comprehensive Strategic Partnership Agreement” bolstered China’s ties with Iran.
In 2021, China Petroleum & Chemical Corporation (Sinopec) signed a 25-year deal with Iraq’s Oil Ministry to develop the Mansuriya field. The agreement mirrored the structure of earlier deals, with a 49% stake held by the Iraqi government and 51% by the Chinese company. However, the deal was eventually canceled due to a lack of progress.
Now, China is attempting to reignite the development of Mansuriya through the Jereh Group, aiming to address the previous setbacks and secure its position in Iraq’s gas sector.
The Geopolitical Importance of Mansuriya
The Mansuriya, Siba, and Akkas fields form a critical triangle across southern Iraq, stretching from the eastern border with Iran (Mansuriya) to the south near the Basra export hub (Siba) and further west to the border with Syria (Akkas). This region, historically home to anti-Western sentiments, is of great importance to both Russia and Iran.
Russia’s presence in the region is crucial for its geopolitical goals, particularly in Syria, where it controls key ports such as Tartus and Banias. The port of Tartus serves as Russia’s only naval base in the Mediterranean, while Latakia is used for intelligence gathering. For both Russia and Iran, securing this land corridor through Iraq and Syria is vital to their plans to build an oil and gas pipeline from Iran to the Mediterranean, facilitating energy exports to Europe while circumventing Western sanctions.
In this context, China’s involvement in Iraq, particularly its role in managing the Mansuriya field, allows it to influence the development of these critical energy routes. By positioning itself as a key player in Iraq’s gas sector, China strengthens its hand in shaping the geopolitical dynamics of the region. This, in turn, enhances its negotiating leverage in broader global matters, including trade relations, sanctions policy, and regional security concerns.
As the situation unfolds, China’s actions in Iraq will continue to shape the energy and political landscape of the Middle East, potentially altering the balance of power between the U.S., Russia, and China in this strategically vital region.
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