Iraq is likely to more than double its crude oil exports to China to 300,000 barrels per day (bpd) as part of an oil for reconstruction agreement signed between the two governments last year, the financial advisor to the Iraqi government said.

Under the 20-year agreement, the OPEC member is currently exporting 100,000 bpd of crude oil to China.

Mudher Mohammed Saleh told Zawya Projects that any decision on increasing crude oil exports to China would be guided by the benefits accruing to Iraq.

He noted that nearly a half billion dollars has accumulated in Iraq's sovereign account in China since the oil for reconstruction deal kicked off in October 2019.

Saleh also pointed out that China has started work on two vital projects in the power and oil sectors under the reconstruction agreement.

He said the two projects comprise of a 1,400-megawatts (MW) thermal power station in northern Baghdad and a strategic oil storage project in southern Iraq, adding that the projects could take up to two years to be completed.

(Reporting by Majda Muhsen; editing by Anoop Menon)


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