Five American companies, including Chevron Corp., signed agreements with the Iraqi government yesterday, Wednesday, aimed at strengthening Iraq's energy independence from Iran, at a time when Iraqi Prime Minister Mustafa Al-Kazemi is preparing to make his first visit to the White House today, Thursday.
The US Department of Energy said in a statement that Honeywell International Inc, Baker Hughes Co, General Electric Co, Stellar Energy and Chevron have signed trade agreements worth up to $ 8 billion with the Iraqi ministers of oil and electricity. .
The Iraqi economy was affected by the general closure measures to limit the spread of the new Corona virus, and by the decline in oil prices. Protests that erupted last year led to the resignation of the former prime minister.
"These agreements are important for the future of energy in Iraq, and I am confident that the same companies that enabled the United States to achieve energy independence will use their vast experience to help Iraq achieve its full potential in the energy sector," US Energy Secretary Dan Brouillett said in a statement.
The agreements were signed after the Iraqi ministers of oil and electricity met with Brouillette, and after a round-table meeting in Washington on Wednesday with the Prime Minister of Iraq and the US Minister of Energy Industry.
A senior US administration official said - in a separate interview to reporters, before the Energy Department’s statement - that these officials will also discuss national security issues in addition to economic cooperation.
Maintenance of power stations
In a separate statement, the American General Electric Company said it had signed two new agreements worth more than $ 1.2 billion with the Iraqi Ministry of Electricity, to start maintenance programs for major power stations in the country and to strengthen the distribution network.
In Iraq, too, Baghdad requested assistance from the International Monetary Fund in rehabilitating economic sectors to reduce dependence on oil.
The official Iraqi News Agency reported that the Iraqi request came during a meeting between Prime Minister Mustafa Al-Kazemi and the Fund’s General Director, Kristalina Georgieva, at his residence in the American capital, Washington.
A statement by the Iraqi Presidency stated that Al-Kazemi discussed the possibility of concluding an agreement with the Fund, to support the Iraqi economy, and reduce its dependence on oil, by rehabilitating other sectors and making them compete with the oil sector in a way that can absorb unemployment in the country.
Iraq lost $ 11 billion in oil sales proceeds for the first four months of this year, due to the decline in oil prices under the pressure of the Corona pandemic, according to oil ministry data.
Oil revenues constitute 98% of foreign currency inflows to Iraq, and 93% of general budget revenues.