DMEA: Iraq, Lebanon to renew existing oil deal

Energy ministers from Iraq and Lebanon signed a memorandum of understanding (MoU) on Friday 21 to renew an existing oil deal signed two years ago, according to official statements. The initial deal – worth $300mn-$400mn at the time – stipulated that Baghdad would supply oil to Beirut in exchange for various services, including healthcare for Iraqi citizens. Lebanese Minister of Energy and Water Walid Fayad and Iraqi Minister of Oil Hayan Abdul Ghani were present at the signing of the MoU, which stated that Iraq would increase the export volumes of crude and fuel oil to Lebanon by 50%, reaching 1.5mn tonnes in 2023.

The renewal of the deal comes as Lebanon continues to struggle with power shortages, made worse by years of economic turmoil. The Iraqi ministry stated that the deal served “common interests.”