Iraq may sign more oil-for-project deals

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19 January 2020

Iraq is seeking to sign agreements with three more countries similar to its deal with China allowing it to fund post-war reconstruction projects in exchange for oil supply, a senior Iraqi official was quoted on Sunday as saying.

The OPEC member has approached the United States, Japan and South Korea for such agreements and is awaiting response, Mudhar Saleh, the Prime Minister financial adviser, told Iraq's Alforat News network.

"We have contacted those countries for possible partnership agreements similar to the agreement we have signed with China," he said.

He said the proposed agreement would allow Iraq to fund projects to rebuild its infrastructure and develop other sectors.

"The US has welcomed the idea and promised to respond to it...we are also awaiting response from the two other countries," he said.

Iraq and China signed a memorandum of understanding for such a fund during a visit to Beijing in 2019 by Prime Minister Adel Abdul Mahdi. Officials said this month two Chinese firms have already awarded projects as part of the deal which involves the export of 100,000 barrels per day of Iraqi crude.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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