BAGHDAD: Iraq signed a major energy deal Wednesday with a Chinese petrol company in the southern province of Basra, aiming to boost oil production and build a refinery and electricity plants.
China has gained a major foothold in oil-rich Iraq in recent years, becoming a major player across various sectors and now one of the largest importers of Iraqi crude.
Iraq’s Oil Minister Hayan Abdel Ghani announced in a statement the signing of the mega-project with a consortium comprising of Geo-Jade Petroleum and the Iraqi company Hilal al-Basra.
The project aims to increase oil production in the Tuba field to 100,000 barrels per day, according to Abdel Ghani.
It also covers the building of a refinery with a capacity of 200,000 bpd, a 650-megawatt electricity plant and a solar power facility with a capacity of 400 megawatts.
The deal also includes a petrochemical plant and a fertiliser factory.
Abdel Ghani said the project “would contribute to the country’s economic development and provide job opportunities for thousands” of Iraqis.