Iraqi Prime Minister Adel Abdel Mahdi received on Saturday visiting Saudi Minister of Energy, Industry and Mineral Resources Khalid al-Faleh and accompanying delegation.
Political sources in Baghdad indicated the visit was to "discuss bilateral relations and energy affairs between the two countries," while economic sources indicated that the visit aims to focus on oil production in the next phase after US sanctions against Iran went into effect.
During the meeting, Faleh conveyed the leadership’s keenness to consolidate reach out between the two countries, at strategic level, in addition to opening new horizons for interconnection and integration, in the economic, development and investment domains, to protect joint interests of the two countries.
Faleh also met with the Iraqi Deputy Premier for Energy Affairs Thamer al-Ghadhban and agreed on the necessity to coordinate and unify efforts and stances, in domain of oil production, energy, industry and enhancing trade exchange.
Faleh’s visit coincided with the launch of the 45th session of Baghdad International Fair, inaugurated by Iraq's Prime Minister, with the participation of over 700 firm from 18 different countries.
"One of the essential priorities of the government is to develop the Iraqi economy, stressed the Iraqi PM Abdel Mahdi, affirming that: "we have to provide a suitable environment and special protection for companies investing in Iraq.”
Iraqi Minister of Trade Mohammed Hashim al-Aani also indicated that the expo is a clear message that Iraq is determined to promote the Iraqi market through development and investment, and establish economic relations with all countries.
"The launch of the fair's events and the outstanding attendance comes from the government's keenness to establish investment projects with all Arab and foreign countries, as Iraq is a fertile ground to create an investment environment," the trade minister added.
International economic relations professor, Abdul Rahman al-Mashhadani, considered the Saudi official’s visit to be very important for coinciding with US sanctions on Iran and the assignment of Minister Thamer Ghadhban on the oil file in Iraq.
Mashhadani said in an interview with Asharq Al-Awsat that oil producing countries, including Saudi Arabia and Iraq, are interested in regulating the international oil market during the 180-day grace period granted by the United States to the countries importing Iranian oil.
He believes Iraq is a promising country in the field of oil and one of the most important elements of the global balance in the oil market, adding that the country can compensate for Iran’s share if US sanctions against Tehran entered into full implementation in the coming months.
For his part, spokesman for Iraq’s Oil Ministry Asim Jihad told Asharq Al-Awsat that "Saudi Energy Minister conveyed a message of support to the Iraqi government from Saudi King Salman and Crown Prince Prince Mohammed bin Salman in various fields, Including the oil and power sectors.
He indicated that Minister Faleh affirmed that there is a new shift in the relationship between the two brotherly countries through the readiness of Saudi official companies, the private sector and investors to venture the fields of investment in Iraq.
He pointed out that the talks discussed the involvement of Saudi Aramco and SABIC in the oil industry projects, as well as gas and metallurgical industries.
On the stability of the oil market, Jihad said that the two ministers discussed joint coordination between the two countries in terms of maintaining the stability of the oil market.
Asked about Baghdad’s International Fair, the spokesman indicated that the exhibition offers a new opportunity for Iraq to bring investment and provide an opportunity for trade exchange.
Iraq and Saudi Arabia agreed on Saturday to work together to stabilize oil markets, spokesman Jihad said, without giving further details.
During a meeting in Baghdad, Iraq and Saudi Arabia’s oil ministers also discussed an electricity grid connection between the two countries to meet Iraq’s power needs, he said.
Iraq currently pumps around 4.6 million barrels per day (bpd) of oil, second only to Saudi Arabia in OPEC. The bulk of Iraq’s oil is exported via its southern terminals, which account for more than 95 percent of state revenue.
Earlier this week, Iraq’s Oil Minister said the country plans to increase its oil output and export capacity in 2019, with a focus on the southern oilfields, and is close to reaching a deal with international companies.
The country is targeting production capacity of 5 million bpd in 2019, with average exports expected to reach around 3.8 million bpd.
