“The oil deal” between Iraq and China … Experts warn
“The oil deal” between Iraq and China … Experts warn
Posted, 12/12/2020 21:51:38
{International: Al-Furat News} Experts have questioned the recently announced oil deal between Iraq and China, according to which Baghdad will pump oil to Beijing, in exchange for the latter paying cash to the Iraqi government.
According to Reuters news agency, the Chinese company “Chenhua Oil” for oil trade has submitted an offer to the Iraqi Oil Marketing Company (SOMO), to pay about $ 2.5 billion for 48 million barrels of crude between July 1, 2021 and June 30, 2022. It
described The American “Bloomberg” agency, this deal is “rare”, as Baghdad had not previously entered into a prepaid deal, even though the Kurdistan Regional Government concluded similar contracts in the past.
In addition, the deal is also rare because it allows the company to which the bid applies to ship Iraqi crude to any destination it desires for a year. Usually, Middle Eastern crude is sold under strict conditions that prevent traders and refiners from reselling the barrels to different regions.
The Iraqi economist, Safwan Qusay, said that the Ministry of Oil’s direction of the urgent sale process at the current price is fraught with risks, especially since the current circumstances indicate that oil prices are going to rise. ”
And Qusay added,“ I think that if oil is sold in speculative markets, it is necessary. To be on scientific grounds, my opinion is that there will be Iraqi oil prices higher than the current prices, so that they are suitable for the new year 2021. ”
Besides the economic ambiguity surrounding the deal, other Iraqi experts warned that Iraq would fall prey to Chinese influence or a playground for conflicting regional powers And
the US Bloomberg Agency had described the deal as the latest example of Chinese loan policy, through commercial companies and banks controlled by Beijing, in exchange for payment in oil barrels.
Several reports previously warned of the Chinese loan policy, whereby Beijing controls and confiscates some of the assets and assets of other countries when borrowing governments fail to fulfill their obligations.
Countries such as Sri Lanka, Pakistan, and more recently Laos, which will hand over the largest share of its electric power grid to the China National Electricity Company, have been victimized by this policy, due to its failure to pay off Chinese debts.
The deal comes at a time when Iraq’s gross domestic product is expected to contract by 12 percent this year, more than any other member of OPEC, according to IMF projections.
alforatnews.com
