Chinese oilfield services company Anton Oil reported weaker results from its Iraq operations during the first half of 2026, with regional instability and contract changes affecting business activity.
Revenue from Iraq fell by 16.2% to around RMB 1.21 billion, down from RMB 1.45 billion during the same period last year. Iraq remained the company’s largest market, accounting for more than 45% of its total revenue.
New orders from Iraq dropped sharply by 50.5% year-on-year to approximately RMB 1.24 billion. Anton Oil said the decline was mainly caused by the expiration of its long-running integrated oilfield management contract at the Majnoon oil field, which was not renewed after nearly eight years. The company also pointed to delays in project tenders due to uncertainty and volatility across the Middle East.
The company said restrictions affecting passage through the Strait of Hormuz disrupted Iraq’s oil exports and led some oilfields to adjust production plans. As a result, project activity slowed, new developments were delayed, and tendering activity was affected.
Despite these challenges, Anton Oil continued work on the Dhufriyah oilfield project. The first exploration well was drilled in February 2026 and completed in July. The company reported positive signs of oil and gas across several underground formations.
During the reporting period, company representatives and project partners met in Baghdad and agreed on future drilling plans, engineering work, and the overall project schedule.
Anton Oil also expanded the use of technology in Iraq by introducing its digital twin platform for smart oilfield facilities. Other technologies used included well stimulation, sand control, water shutoff solutions, and electric submersible pumps.
The company reported a net operating cash outflow of about RMB 64 million during the first six months of 2026. Anton Oil said this was largely due to delays in receiving payments from projects in the Iraqi market.
