Iraq, the Organization of the Petroleum Exporting Countries (OPEC) member, is expected to gain approximately $1.75 billion from the sale of 100,000 barrels per day (bbl/d) of crude oil to China in 2020, an Iraqi official said, according to Zawya.
This comes in line with Iraq’s and China’s oil-for-construction fund agreement. The funds will be included in the 2020 budget, and will be directed towards reconstructing the country, said Mudhar Saleh, a financial adviser to the Iraqi Prime Minister.
“The 2020 budget will include around 2.087 trillion dinars for projects, an equivalent of 100,000 bbl/d of oil to be exported to China for one year,” Saleh noted.
Earlier this year, Saleh said that Iraq could triple its crude oil sales to around 300,000 bbl/d as part of their 20-year agreement that allows Baghdad to fund infrastructure and other projects with oil sales to Chinese firms.