Iraq has extended the agreement on the supply of fuel oil to Lebanon with an increase of 50 percent of the annual amount, which meets the needs of Lebanon in oil products with the onset of the summer season.
Iraqi Cabinet Agrees to Meet Lebanon’s Energy Needs
The Lebanese Ministry of Energy and Water Resources said in a statement that the Iraqi Cabinet had agreed, based on the proposal of the Minister of Energy and Water Resources of the interim government, Walid Fayyad, to meet all of Lebanon’s needs for oil products. The supplies will be based on four batches starting from the date of July and ending at the end of November of the following year, and renewing the supply contract at its current terms, with an increase of 50% over the annual volume to reach 1.5 million metric tons.
New Commercial Contract to Provide Crude Oil
The Iraqi government has also agreed to sign a new country-by-country commercial contract to provide up to 2 million tons of crude oil per year. The crude oil will be replaced in accordance with the specifications set by the Electricité du Liban Corporation under a transparent competitive mechanism and on preferential terms. This includes a deferred payment mechanism for six months from the date of receipt, without organizing any financial incentives, and at a price that takes into account competitive world prices.
Gratitude Expressed
Minister Fayyad thanked “the sister Republic of Iraq, especially Iraqi Prime Minister Muhammad Shia al-Sudani, Oil Minister Hayan Abdul-Ghani, Prime Minister’s Office Director Ihsan al-Awadi and all those who contributed to the success of this initiative.”
Lebanon’s Economic Crisis
Lebanon is suffering from a suffocating financial and economic crisis exacerbated by rising prices for food, fuel, medicines, basic commodities, fuel and electricity, as well as by the depreciation of the Lebanese pound to unprecedented levels.
Source: “Vestnik”