Iraq plans 50% increase in crude oil supplies to China for project funding

A high-ranking Iraqi official has unveiled plans to boost the country’s crude oil supply to China by 50 percent. This initiative is part of a groundbreaking oil-for-project arrangement, aiming to incentivize Chinese businesses to engage in additional ventures within Iraq.

Under a 20-year agreement forged in 2019, Iraq committed to providing Chinese companies with 100,000 barrels per day (bpd) of crude oil. In return, these Chinese firms undertook various projects to support Iraq’s development. Now, Mazhar Mohammed Saleh, the finance advisor to Iraq’s Prime Minister, has disclosed that the government is considering increasing oil supplies to China to 150,000 bpd.

According to the Iraqi News Agency (INA), all proceeds generated from these augmented deliveries will be directed towards financing initiatives embedded in the national budget. Saleh emphasized that Chinese companies have successfully executed numerous projects in Iraq under the terms of the 2019 agreement. Notable achievements include the construction of 1,000 schools, development of the Nasiriya city airport, establishment of power plants, and various other endeavors.

Saleh further highlighted upcoming projects, revealing that Chinese construction companies are poised to initiate the construction of several new hospitals in Iraq. Additionally, plans are in the research stage for a substantial housing project catering to low-income Iraqis—a key component of the 2019 deal.

This strategic move signifies Iraq’s intent to foster stronger economic ties with China while leveraging its oil resources to fuel crucial development initiatives within the country.