Iraq Plans Energy Contracts Worth Billions with Saudi Arabia

Iraqi Oil Minister Ihsan Abdul Jabbar during an interview with Reuters in Basra (Reuters)
Iraqi Oil Minister Ihsan Abdul Jabbar during an interview with Reuters in Basra (Reuters)
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Iraq Plans Energy Contracts Worth Billions with Saudi Arabia

Iraqi Oil Minister Ihsan Abdul Jabbar during an interview with Reuters in Basra (Reuters)
Iraqi Oil Minister Ihsan Abdul Jabbar during an interview with Reuters in Basra (Reuters)

The Iraqi government plans to sign energy contracts worth tens of billions of dollars with Saudi Arabia, the state newspaper al-Sabaah cited Iraqi Oil Minister Ihsan Abdul Jabbar as saying.

Baghdad is discussing a partnership with Saudi Aramco to explore and develop natural gas fields in Iraq's western desert, it said.

It added that the Iraqi government is also in talks with Saudi Arabia's Acwa Power to build water desalination plants and solar energy stations in Iraq. The two countries are also discussing joint petrochemical projects.

The talks focused on establishing long-term relationships that allow Iraq to benefit from Acwa Power's flexibility in implementing low costs and high-efficiency projects.

He explained that the Ministry of Oil and the Saudi SABIC Company have been in "intensive and positive" talks since April, which led to a special memorandum that will be presented to the Iraqi government.

The government is expected to discuss the Saudi company's participation in an investment in the Nibras petrochemical project in Basra under an agreement between the Energy Ministry and Royal Dutch Shell to establish a petrochemical complex with a capacity of 1,800 tons annually.

The minister hoped there would be a clear law regulating and protecting Saudi, Emirati, and foreign companies operating in the country.

The Iraqi National Oil Company signed agreements with major international energy companies, including the French Total, the UAE's Masdar, and the Norwegian Scatec.

The contracts will provide revenues and added profits to the Iraqi market and offer thousands of job opportunities.

The minister noted that it is natural for Saudi companies to be interested in a country such huge as Iraq.

Saudi Arabia sees that the sustainable development plans in the two countries fall in line with the 2030 Agenda for Sustainable Development and its institutional frameworks.



Putin, Al-Sudani Discuss OPEC+ Coordination on Oil Price Stability

Russian President Vladimir Putin
Russian President Vladimir Putin
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Putin, Al-Sudani Discuss OPEC+ Coordination on Oil Price Stability

Russian President Vladimir Putin
Russian President Vladimir Putin

Russian President Vladimir Putin and Iraqi Prime Minister Mohammed Shia al-Sudani on Thursday discussed the importance of coordination between OPEC and OPEC+ members on oil price stability in a manner that guarantees fair prices for exporters and consumers.

Putin held a phone call with al-Sudani during which they discussed the OPEC+ oil agreement and the situation in the Middle East, the Kremlin said.

The telephone conversation came days prior to an OPEC+ key meeting expected early next month.

Reuters said that OPEC+ may push back output increases again when it meets on Dec. 1 due to weak global oil demand, according to three OPEC+ sources familiar with the discussions. Ministers last shelved the increase for a month when they met virtually on Nov. 3.

In a statement, the Kremlin on Thursday said Putin and Al-Sudani touched upon various aspects of coordination as part of OPEC+, a format that helps maintain stability in the global oil market, and reaffirmed the importance of continuing to coordinate steps in this format.

The Middle East issues were also mentioned in light of the unprecedented escalation of tensions in the region, it added.

The parties also agreed on further contacts at various levels, the statement said.

Later, Al-Sudani’s office said the phone call touched on energy-related matters, highlighting the importance of coordination among all concerned countries within OPEC and the OPEC+ group to stabilize oil and gas prices, ensuring fair pricing for both producers and consumers.