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Iraq Picks Chinese Firm for $2 Billion Oil Prepayment Deal

  • State oil firm SOMO says Chinese company beat European bidders
  • ZhenHua Oil won the contract, Bloomberg reported last month
Updated on

Iraq confirmed that it’s selected a Chinese company for a multibillion-dollar oil-supply deal, as the Arab nation seeks funds to bolster an economy reeling from the coronavirus-triggered collapse in energy prices.

SOMO, which oversees Iraq’s petroleum exports, picked a Chinese company after receiving bids from several traders, the official Iraqi News Agency reported, citing an interview with the head of SOMO, Alaa Al-Yasiri. While INA didn’t name the company or specify if Prime Minister Mustafa al-Kadhimi had signed off on the deal, Bloomberg reported last month that ZhenHua Oil Co., a subsidiary of China’s largest state-owned defense contractor, was the winner.