Iraq has agreed a multibillion-dollar oil-supply deal with a Chinese company, according to the Arab nation’s official news agency.
SOMO, which oversees Iraq’s petroleum exports, picked a Chinese firm after receiving bids from several traders, INA reported, citing an interview with SOMO General Manager Alaa Al-Yasiri. While INA didn’t name the company or specify if Prime Minister Mustafa al-Kadhimi had signed off on the deal, Bloomberg reported last month that ZhenHua Oil Co., a subsidiary of China’s largest state-owned defense contractor, was the winner.
SOMO offered to supply roughly 130,000 barrels a day of crude for five years, according to a letter it sent traders in November. It sought upfront payment for one year of supply, which at current prices would bring in more than $2 billion, according to Bloomberg calculations.
