Iraq Doubling Its Oil Supply To China

AP Iraq Oil

Iraq will more than double oil supplies to China next year, to over 300,000 barrels per day, Reuters reports.

That figure is roughly 30% of the total contractual amount that China agreed to take from Saudi Arabia, the country’s primary supplier, and 14% of the 2.1 million barrels per day that Iraq plans to export in 2010.

Saudi oil production cuts are partially responsible for the planned increase from Iraq next year.

China’s average daily imports of approximately 144,000 barrels per day this year has almost tripled over the past 11 months. The country has seen the fastest fuel demand growth in the world in 2009.

The four Chinese firms taking in Iraqi crude are Unipec, Chinaoil, Sinochem, and Zhenhua Oil. China’s premier energy group, CNPC, won contracts earlier this month to develop two Iraqi oil fields: Rumaila, in consortium with BP, and Halfaya, tied to Total and Malaysia’s Petronas.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.