American multinational oilfield services company, SLB (formerly Schlumberger) has begun a temporary withdrawal from the Akkas gas field in western Anbar, a move consistent with a broader regional drawdown of its personnel. The suspension comes less than two months after the U.S. services firm initiated drilling operations on six pilot wells to increase field production to 100 million standard cubic feet per day (MMscf/d).
The al-Qaim district—where Akkas is located—has faced a series of airstrikes targeting Popular Mobilization Forces (PMF) units. Despite these hostilities, Chinese state-backed firm SEPCOIII remains operational at the 1,640-megawatt Anbar Combined-Cycle Power Plant.
Why It Matters
While SLB’s withdrawal is framed as a temporary suspension pending security reassessment, it highlights the diverging risk tolerances of Western service giants versus Chinese state-owned enterprises. The recent escalation in the regional conflict involving the U.S., Israel, and Iran has turned the Iraq-Syria border corridor into an active combat zone, prompting SLB to prioritize personnel safety over its service contract with Midland Oil Company. This retreat jeopardizes the "fast-track" timeline for Akkas, which was intended to stabilize the national grid by late 2026.
Conversely, the continued presence of SEPCOIII illustrates Beijing’s commitment to its integrated energy strategy in Iraq. By maintaining operations on the Anbar power plant and the Akkas-to-T1 pipeline, Chinese firms are positioning themselves as the only reliable partners for Iraq's critical infrastructure under high-threat conditions. SEPCOIII’s persistence suggests that Chinese state-backed projects—supported by Sinosure financing and sovereign-level diplomatic channels—are more resilient to localized kinetic activity than Western commercial ventures.
Bottom Line
The combined security and operational shifts will cause major delays to critical infrastructure projects in Anbar, effectively stalling the province's transition to energy self-sufficiency. The essential indicator to watch is whether SEPCOIII or other Chinese firms maintain their current mobilization levels at the Anbar power plant through Q2 2026.
