Iraq to Barter Crude Oil for Iranian Gas
By John Lee.
In an effort to address the electricity crisis and overcome financing and sanctions-related challenges, Iraq and Iran signed an agreement on Tuesday in Baghdad, involving the exchange of Iranian-imported gas for Iraqi oil.
Representing the Iraqi side, Mr. Ihsan Yaseen Al-Awadi, Chief of Staff to the Prime Minister, signed the agreement, while Mr. Mohammed Kazem Al-Sadiq, the Iranian Ambassador to Iraq, signed on behalf of the Iranian side.
The agreement was reached after several days of negotiations involving technical and expert committees from both countries.
It is part of the government's efforts to address the gas supply crisis for power stations, overcome financing issues, and navigate the complexities of US sanctions that have hindered the payment for gas imports from Iran. It is expected to provide greater flexibility in gas supply, power station operations, and stabilize electricity production.
In addition to this, the Ministry of Oil has been authorized to contract with gas-producting companies in the Kurdistan region to supply a number of power stations.
(Sources: Media Office of the Prime Minister, Ministry of Oil)