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Iraq agrees to send millions of tons of oil to Lebanon

  • By Al Mayadeen English
  • Source: Al Mayadeen Net
  • 16 May 2023 23:00
  • 2 Shares
2 Min Read

The Iraqi Council of Ministers says it will extend its previous deal with Lebanon and provide it with the necessary petroleum derivatives to operate its power production plants.

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  • Iraqi Prime Minister Mohammed Shia Al-Sudani holds the first regular session of the Council of Ministers in Baghdad, Iraq, 28 October 2022. Iraqi Prime Minister Media Office Handout (Reuters)
    Iraqi Prime Minister Mohammed Shia Al-Sudani holds the first regular session of the Council of Ministers in Baghdad, Iraq, 28 October 2022. Iraqi Prime Minister Media Office Handout (Reuters)

Iraq will be supplying Lebanon with the necessary petroleum derivatives to operate its power production plants and to renew the current deal between the two countries under the same clauses, the Iraqi Council of Ministers announced on Tuesday.

The Council also agreed to increase the supply of fuel oil by 1.5 million tons and crude oil by 2 million tons per year as the statement read, "In commitment to the fraternal ties of Iraq with its Arab brothers" and Iraq's commitment to stand with them and support them in various circumstances and crises, the Council of Ministers agreed to meet Lebanon’s needs of oil derivatives to operate electricity production plants in Lebanon."

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"We agreed to renew the supply agreement, under its current terms, for an additional third year, starting next October 2023," the statement added.

In July 2021, the former Lebanese Minister of Energy and Water, Raymond Ghajar, signed a finalized contract with the Iraqi government in Baghdad to import one million tons of oil in an attempt to minimize the effects of the power crisis in Lebanon.

Since the end of 2019, Lebanon has been going through a severe economic collapse which was aggravated after the Beirut Port explosion in August 2020.

The Lebanese pound has followed suit and has experienced extreme depreciation against the US dollar.

  • Baghdad
  • Beirut
  • Iraq
  • Iraqi oil
  • Oil
  • Lebanon
  • Crude oil

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