The China National Offshore Oil Corporation (CNOOC) has officially signed a contract with the State Oil Company of Iraq to commence exploration in the newly designated exploration area number 7, situated in central Iraq. This contract follows CNOOC's successful bid in a tender conducted by the Iraqi federal government earlier this year, which saw major Chinese energy firms awarded a total of four contracts for nine oil and gas fields.

The exploration area number 7 spans approximately 6,300 square kilometers and covers parts of the Diwaniya, Babil, Najaf, Wasit, and Al-Muthanna provinces, located near the Al-Gharraf and Al-Nasiriya oil fields, according to reports from the Washington-based energy platform. Notably, this area currently has no existing drilled wells, presenting a significant opportunity for potential oil discoveries in the near future.

As part of the agreement, CNOOC Africa Holding—CNOOC's fully owned subsidiary—will operate the exploration area and hold a 100% stake. The first phase of exploration is set to last three years, although the exact start date has yet to be confirmed.

CNOOC is already recognized as one of the leading global oil producers in Iraq, with a strong operational focus on the Maysan oil field in the southeastern part of the country. The company also previously secured licenses in the Sumur area of Al-Muthanna Governorate, which spans approximately 1,773 square kilometers and includes key reservoirs such as Al-Nahr Omar, Al-Zubair, Al-Yamama, and Al-Najma.

In recent months, CNOOC was among seven Chinese companies that successfully acquired a significant portion of licenses for various oil projects in Iraq during two licensing rounds conducted in May 2024. This included both the fifth supplementary licensing round, initiated in 2018, and the sixth round.

The latest licensing rounds attracted considerable interest, with 22 international and local firms vying for contracts related to approximately 29 projects across 12 provinces in Iraq.

On October 27, Baghdad finalized contracts for oil and gas exploration agreements with the successful bidders from the fifth supplementary and sixth licensing rounds, aiming to enhance Iraq's energy production capabilities by adding between 800 and 850 million standard cubic feet of gas per day, along with 750,000 barrels of crude oil per day.