China Outbids Oil Majors in Iraq

Chinese national oil companies are now the biggest beneficiary of Iraq's oil resources, beating the oil majors, according to analysts.

"Chinese companies backed up by the Chinese government enjoy serious advantages over the international oil companies (IOC) and also have better bargaining power," according to Gal Luft, the executive editor at the Institute for the Analysis of Global Security. "One should not forget that those companies are less risk-averse and therefore can take on projects that the IOCs wouldn't want to touch."

Adds Cameron Hanover analyst Peter Beutel: "China has the money and is clearly a rising power. It can offer political help, technological help in some cases, military aid -- which none of the majors can."