Iraq, Lebanon renew oil deal

ERBIL (Kurdistan 24) – Iraqi and Lebanese energy ministers on Friday signed a memorandum of understanding to renew an existing oil deal signed two years ago, according to which, Baghdad would supply crude oil to Beirut, according to official statements.

Iraqi Minister of Oil Hayan Abdul Ghani and Lebanese Minister of Energy and Water Walid Fayad on Friday in Baghdad inked the MoU, under which Iraq would increase the volume of crude and fuel oil export to Lebanon by 50% percent to 1.5 million metric tonnes in 2023.

Lebanon’s energy deal with Iraq is to help Beirut to overcome its power shortages, exacerbated by years of economic distress, a statement from the Iraqi ministry wrote, adding the deal serves “common interests.”

First signed in July 2021, the deal stipulated that Iraq would supply Lebanon with fuel in exchange for the latter to provide medical services to Iraqis. The deal was worth $300-$400 million at the time.

Iraq’s oil is used to supply the Lebanese power sector, and the exporting country itself suffers from chronic power outages, particularly during the sweltering summer season.

Baghdad and Tehran recently inked a similar exchange deal, according to which, Iraq would supply Iran with crude oil in exchange for gas used for power generation.