PetroChina Sees Decline in Iraqi Oil Output Amid Regional Conflict

PetroChina, China's largest oil and gas producer, reported a decline in crude oil output in Iraq during the first half of 2026 due to regional conflicts that led to temporary plant closures.

The company's total crude oil production dropped by 2.8% to 462.9 million barrels in the six-month period, primarily driven by a 14.2% decrease in overseas production.

This rare supply contraction was caused by forced project shutdowns and operational disruptions at PetroChina's main Middle Eastern oilfields, particularly in Iraq, following the onset of the US-Iran geopolitical crisis.

Despite the decline in output, PetroChina still had a highly profitable first half of 2026, with net profit increasing 22% to 103.94 billion yuan ($14.65 billion), surpassing the 100 billion yuan mark for the first time.