This research will describe and analyze Chinese State owned energy Companies’ increasing involvement with governments and other players, such as local institutions and local stakeholders in Iran and Iraq.

Start from describing and analyzing the contracts Chinese NOCs signed with Iran and Iraq, and analyzing if and on what extent the TSC contracts meets the needs of different players in this cooperation relationship (Chinese government; Chinese NOCs; resources rich countries). The research will get some conclusion about how Chinese NOCs behaves in countries with extremely high political risks under TSC contracts.

The hypotheses of this research is that while the investment in Iran and Iraq brings  more profits than those investments in other regions to Chinese NOCs, but cannot guarantee stable oil export to China due to the nature of TSC. The Chinese NOCs’ involvement in Iran and Iraq will get less support from Chinese government and the invest behaviors of Chinese NOCs in Iran and Iraq will more like their western counterpart in the future.