Iraq produces about 2.5m barrels of oil a day. China is the world’s second-largest consumer of oil and its state-run energy companies are keen to expand their foreign reserves.
A partnership with Shell would be China’s second major venture in the Gulf state. State oil group CNPC’s $3bn (£2bn) project to develop the al-Ahdab field was Iraq’s first large oil deal with a foreign company after the fall of Saddam Hussein.
