By Simon Kent.
There is growing speculation over a planned energy initiative between Iraq and China, with both Iraqi PM Haider al Abadi and oil minister Adel Abdul Mahdi travelling to China for “deep discussions” on the proposal.
According to The Wall Street Journal, Unipec, the trading branch of Chinese state refiner Sinopec, will be working with SOMO, the Iraqi State Oil Marketing Company.
Under the plan, Iraq will provide tankers taking oil to Chinese refineries while Unipec will finance the marketing scheme, and the two sides will cooperate from Singapore.
China already purchases around 22% of Iraqi oil, although SOMO and Sinopec have not commented on the details of the new plan.
(Source: The Wall Street Journal.)