UPDATE: Deal struck to trade Iranian gas for Iraqi oil

The oil-for-gas deal could sort out a number of internal Iraqi issues – both energy and political.
Ihsan Al-Awadi, Chief of Staff to the Iraqi Prime Minister (right) and Mohammad Kazem Al Sadeq, Iranian Ambassador to Iraq, sign an agreement to swap Iraqi oil for Iranian gas supplies on July 11, 2023. (Iraqi Prime Minister's Media Office)

Update includes details of gas availability from Khor Mor and Chemchemal fields and the discussions between the Pearl Consortium and federal government to supply power plants.

Iran and Iraq have agreed to swap crude and heavy fuel oil for natural gas - a deal that would create a more reliable supply for Iraqi power plants and provide a workaround to U.S. sanctions that have prevented Iran from receiving direct payments for gas exported to Iraq.

Prime Minister Mohammed Shia al-Sudani announced the deal on Tuesday as part of a short-, medium-, and long-term plan to address chronic power outages. It was approved by the Council of Ministers, which also authorized the Oil Ministry to negotiate gas supplies from fields under the authority of the Kurdistan Regional Government (KRG).

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