Iraq appears to be on the verge of losing a deal to develop one of its largest free gas fields after China’s Sinopec asked for fundamental changes to a contract that was awarded by the previous government.
The end of the Mansuriya deal would represent a setback in Iraq’s efforts to develop its domestic gas supplies, increase feedstock for power generation, and reduce dependence on unreliable and expensive gas imports from Iran.
“Sinopec requested some changes in the contract for Mansuriya, regarding the production plateau and the economic model,” said one senior Oil Ministry official. “These aren’t very encouraging amendments for the Oil Ministry.”
The ministry’s initial reaction to Sinopec’s proposal was so negative that multiple Iraqi oil officials and industry officials have concluded the deal is dead, even though two Iraqi oil officials also said neither side has formally decided to end it.
“The Sinopec deal has collapsed almost completely,” said one industry official.
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