Iraq thinking about increasing oil deals with China and Russia

As part of their historic oil-for-project arrangement, Iraq is considering increasing crude oil supplies to China by 50 percent in order to encourage Chinese companies to invest in the country more.

Chinese companies will receive 100,000 barrels per day (bpd) of crude oil from Iraq in exchange for supporting Iraqi projects over a 20-year period.

The Iraqi government is considering increasing oil supplies to China to 150,000 barrels per day, according to Mazhar Mohammed Saleh, the finance advisor to the Prime Minister. All funds generated by these deliveries will be used to fund initiatives included in the budget, said the Iraqi News Agency (INA).

According to Saleh, Chinese companies have completed several projects in Iraq under the terms of the 2019 agreement, including the construction of 1,000 schools, the development of the Nasiriya airport, and the construction of power plants.

Chinese construction companies are planning to build several new hospitals in Iraq, according to the Iraqi official.

As part of the 2019 deal, Chinese contractors will also construct a large housing project for low-income Iraqis.

The developing partnership between Russia and Iraq is reflected in their joint efforts in the military and energy sectors. 

For instance, Lukoil has invested approximately $11 billion into various projects in Iraq's southern provinces, particularly in the Basra region. In addition to these ventures in the oil fields, there is also promising potential for collaboration in the maritime industry. Given its strategic location on key maritime routes, 

Iraq can benefit greatly from Russia's expertise in port development and logistics. The alignment of interests is clear and it is expected that joint initiatives to improve Iraqi port infrastructure and promote stronger maritime cooperation will lead to increased trade and investment flow through these vital trade routes.