A senior Iraqi official has disclosed plans to increase Iraq’s crude oil supply to China by 50 percent as part of their oil-for-project agreement to encourage Chinese companies to invest in the country.
Iraq signed a deal in 2019 to provide China with 100,000 bpd of crude oil in exchange for Chinese companies supporting projects in Iraq.
Mazhar Mohammed Saleh, who serves as the finance advisor to Iraq’s Prime Minister, has recently stated that the Iraqi government is considering increasing the oil supply to China up to 150,000 barrels per day. The revenue generated from these deliveries will be used to fund initiatives included in the budget.
Saleh has stated that Chinese companies have undertaken multiple projects in Iraq as per the 2019 agreement. These projects include constructing 1,000 schools, developing the Nasiriya city airport, building power plants, and other similar projects.
The Chinese construction companies are planning to build new hospitals in Iraq, according to an Iraqi official.
Chinese contractors will execute a significant housing project for low-income Iraqis as part of the 2019 agreement, which is currently in the research stage.
