Disclosure of the contents of an expected agreement between Iraq and China
Disclosure of the contents of an expected agreement between Iraq and China
2020-12-16
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, revealed, on Wednesday, the content of an agreement to be signed between Baghdad and Beijing to sell 48 million barrels by prepayment.
In an interview with the official Al-Sabah newspaper, Saleh said, “The agreement to be signed by the Ministry of Oil and Chinese government oil companies includes the Finance Ministry receiving 48 million barrels immediately for the sale of oil that is delivered 6 months after receiving the sums, with exported quantities of 4 million barrels per month. Over a period of 12 months. ”
He pointed out that “the price of oil sold to the foreign company is determined one month after the signing of the agreement, and the average price of oil in that month is taken as a standard for the price of purchasing quantities. The amounts are delivered to the Ministry of Finance on this basis in cash, that is, six months before export.”
He added, “After setting the selling price at the average oil price in the month following the signing, the sums are received in cash, and the foreign company receives quantities of crude oil regardless of the value,” noting that “the agreement is a kind of borrowing against oil, and this type is called pre-financing for the export of oil in order to support Liquidity of the general budget. ”
He continued, “The Ministry of Oil is studying the offers submitted by participants in a pre-paid oil deal,” explaining that “the aforementioned loan comes within the framework of the borrowing law that was voted on in recent months, which gave the executive authority the power to obtain external loans in a way that helps support implementation.” Strategic and important investment projects. ”
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