BRI: Iraq signs oil-for-projects deal with China's CPP

Deal covers projects in Dhi Qar

  
FILE PHOTO - A general view of a crude oil importing port in Qingdao, Shandong province, in this November 9, 2008 file photo. Image used for illustrative purpose.

FILE PHOTO - A general view of a crude oil importing port in Qingdao, Shandong province, in this November 9, 2008 file photo. Image used for illustrative purpose.

REUTERS/China Stringer Network

OPEC producer Iraq has signed a memorandum of understanding with the China Petroleum Pipeline Engineering Company (CPP) for the execution of a number of projects in the Southern Dhi Qar Governorate, according to its Governor. 

Ahmed Al-Khafaji said CPP would carry out projects covering water sewage, energy, roads and other sectors in the Governorate in exchange for crude supply. 

“This is a preliminary agreement, which needs to be approved by the Federal Government in Iraq before we push ahead with it,” Khafaji said in a statement carried by Aliqtisad News and other Iraq publications. 

The Iraq official said Dhi Qar, which controls nearly 20 percent of Iraq’s recoverable oil resources, would pay CPP in oil but he did not mention the amount to be supplied. 

Iraq, OPEC’s second largest oil producer after Saudi Arabia, signed an agreement with China in 2019 under which it will supply Chinese firms with crude oil as payment for projects they execute in the Arab country. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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