Iraq renews deal to supply Lebanon up to 2 mln tons of crude for a year

Iraq agreed to provide Lebanon with crude oil in an effort to help the struggling country fight its economic crisis.

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22 July, 2023

The two countries signed a memorandum of understanding this week. (Photo by MOHAMMED SAWAF/AFP via Getty Images)

Iraq renewed its agreement to provide Lebanon with up to 2 million tons of crude oil for a year, Lebanese energy ministry said in a statement on Friday.

The two countries signed a memorandum of understanding on Iraq providing Lebanon with fuel oil and crude oil, the Iraqi state news agency INA also reported on Friday, without elaborating.

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In May Lebanon signed deals to secure more fuel supplies from Iraq as Beirut battles to produce more power to help it emerge from years of economic crisis.

Baghdad also agreed to increase the volume of heavy fuel oil supplied under an existing deal by 50% to 1.5 million metric tonnes this year.

Under the heavy fuel oil deal, first agreed in July 2021, Iraq provides the Lebanese government with the fuel in exchange for services including health care for Iraqi citizens.

(Reuters)