|16 January, 2020

Iraq expects $1.75bln from Chinese reconstruction fund in 2020

Money to be used to fund projects

Image used for illustrative purpose. Flames emerge from a pipeline at Basra refinery in Basra province, . REUTERS/Essam Al-Sudani

Image used for illustrative purpose. Flames emerge from a pipeline at Basra refinery in Basra province, . REUTERS/Essam Al-Sudani

REUTERS/Essam Al-Sudani

16 January 2020
OPEC member Iraq expects to net nearly 2.087 trillion Iraqi dinars ($1.75 billion) from the sale of 100,000 barrels per day of crude oil to China in 2020 within their oil-for-construction fund agreement, an Iraqi official said in remarks published on Thursday.

Mudhar Saleh, a financial adviser to the Iraqi Prime Minister, said the funds would be included in the 2020 budget for as part of allocations for post-war reconstruction projects in the Arab country.

He said Chinese companies have already been awarded two projects to rehabilitate a power thermal plant in Samara north of the capital Baghdad and complete giant oil storage tanks in the Southern Nasiriyah city, adding that only 25 percent of the tank project has been completed.

"The 2020 budget will include around 2.087 trillion dinars for projects, an equivalent of 100,000 bpd of oil to be exported to China for one year," Saleh said.

Saleh had earlier said Iraq could triple oil sales to 300,000 bpd to China at a later stage as part of their recent agreement that allows Baghdad to fund infrastructure and other projects with oil sales to Chinese firms.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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