Crisis-hit Iraq mortgages oil to China
Iraq has won an up-front $2 billion infusion from a state-owned Chinese oil company, as it continues to struggle amid the pandemic-triggered collapse in energy prices. After numerous bids to Iraq’s State Organization for Marketing of Oil (SOMO), the deal was clinched by ZhenHua Oil Co, subsidiary of China North Industries Group Corp (Norinco). The deal marks the first in which Iraq has offered a pre-payment for crude, with oil effectively used as security for a loan. According to Bloomberg, SOMO is to supply some 130,000 barrels a day of crude for five years. Norinco is primarily a defense company, with investments in oil and minerals in several countries. (Photo via Iraqi News Agency)