Iraq thinks of increasing oil supplies to China to fund additional projects
The flag of China. Photo: Carlos De Souza/Unsplash
Baghdad (IraqiNews.com) – A senior Iraqi official revealed that Iraq is thinking of expanding its crude oil supply to China by 50 percent as part of their historic oil-for-project arrangement to encourage Chinese businesses to embark on more projects in the country.
Iraq signed a 20-year deal in 2019 to provide Chinese companies with 100,000 barrels per day (bpd) of crude oil in exchange for supporting projects in Iraq.
Mazhar Mohammed Saleh, the finance advisor to Iraq’s Prime Minister, said that the Iraqi government is thinking of raising oil supplies to China to 150,000 bpd, and all the funds made from these deliveries would go toward funding initiatives that are part of the budget, the Iraqi News Agency (INA) reported.
Saleh indicated that Chinese companies have carried out several projects in Iraq under the terms of the 2019 agreement, including the construction of 1,000 schools, the development of the Nasiriya city airport, the construction of power plants, and other projects.
The Iraqi official explained that Chinese construction companies are about to start initiatives to construct several new hospitals in Iraq.
Chinese contractors will also carry out a sizable housing project for low-income Iraqis as part of the 2019 deal, which is now in the research stage.