Iraq signs MoUs with U.S. companies in electricity, oil, and pharmaceuticals

Shafaq News / Iraqi Prime Minister Mohammed Shia Al-Sudani has signed memorandums of understanding (MoUs) with major American companies to implement projects across various sectors including electricity, oil, pharmaceuticals, and the economy.

During a meeting with CEOs and representatives of prominent American companies in Washington D.C., hosted by the U.S. Chamber of Commerce, Al-Sudani addressed inquiries related to Iraq’s investment environment and the government's facilitations to the private sector, according to the PM’s media office.

“During the meeting, Prime Minister Al-Sudani oversaw signing several Memorandums of Understanding between the Iraqi Ministries of Electricity and Oil, the Iraq Development Fund, and various American corporations. MoUs were also signed by the Iraqi private sector companies and American companies in the fields of energy and pharmaceutical manufacturing.”

In his address, the Prime Minister highlighted the openness of Iraq's investment sector to attract reputable global companies to participate in the economic boom and infrastructure projects underway in Iraq. He also highlighted the comprehensive financial, banking, and administrative reforms initiated by the government, which has achieved significant progress within the past eighteen months, as reported by his media office.

Key points from Al-Sudani's speech during the signing ceremony with major American companies include:

-Agreement on the necessity to develop bilateral relations across various sectors.

-Enhancement of the relationship to invigorate the private sector and support U.S. companies in Iraq.

-Iraq's commitment to maintaining stability amid regional challenges.

-Significant progress in economic reforms and execution of major projects.

-Introduction of a Bill addressing challenges facing the private sector.

-Ongoing efforts to achieve full compliance with international standards.

-The implementation of a treasury single account and an integrated banking system, along with updated tax collection, customs reforms, and the correct redirection of subsidies, mark significant accomplishments.

-Supporting the private sector remains a key strategy, with sovereign guarantees being provided for the first time to back projects.

-The Iraq Development Fund aims to involve the private sector, address bureaucracy, and streamline processes for companies.

-Reforms in the tax system and other administrative areas related to company branch registration have been undertaken to foster an attractive investment environment.

-The current trade volume between Iraq and the United States is below $10 billion.

-A comprehensive vision for optimal oil and gas investment has been established, with the sixth licensing round focusing on natural gas fields being offered for the first time.

-Plans are in place to achieve gas self-sufficiency and end gas imports within 3-5 years.

-Integrated projects have been initiated in 6-8 fields across provinces, following a model that develops oil, utilizes associated gas, and establishes electric stations and petrochemical industries on the same site.

-Iraq is embarking on creating a fixed platform for receiving liquefied natural gas for the first time, providing an opportunity for American and other international companies.

-A contract has been signed with KBR to conduct a study for the fixed platform, aimed at future gas reception and export.

The media office’s statement clarified that the government MoUs that were signed are:

1. Ministry of Electricity and General Electric (GE): MoU to develop the energy sector.

2. Ministry of Oil and Honeywell: Partnership agreement to develop strategic plans for oil fields and associated gas.

3. Ministry of Oil and General Electric: Agreement to enhance oil field and associated gas development.

4. Iraq Development Fund and MACK: Memorandum for the manufacture of specialized vehicles.

Private Sector Memorandums with American Companies:

1. Baxter International: Cooperation in the field of dialysis supplies.

2. KBR: Development of oil fields.

3. KBR: Processing raw gas into liquefied and associated gas.

4. US International Development Finance Corporation with National Bank of Iraq NBI: To enhance financial cooperation.

5. TransAtlantic Petroleum: Oil field management and development.

6. Honeywell: Development of associated gas fields and ending gas flaring.

7. Honeywell: Development, automation, and remote-control services.

8. Baker Hughes: Implementation of smart solutions to stop gas flaring and oil field maintenance.

9. Emerson: Technology and automation in oil fields.

10. GE: Support for the oil industry.

11. ARC Energy: Solutions for associated gas processing.

12. Emerson: Energy development and equipment provision.

13. GE: Supplying equipment for processing associated gas in power generation.

14. Honeywell: Oil field development, maintenance, and stopping gas flaring.

Noteworthy, Al-Sudani arrived in Washington on Sunday on an official visit, leading a high-ranking government and parliamentary delegation. It is his first visit to the United States since assuming office in October 2022,

The Prime Minister met with President Joe Biden, Secretary of State Anthony Blinken, the Deputy Secretary of the Treasury Wally Adeyemo, Stellar Energy's CEO Peter Gibson, Czech Prime Minister Peter Fiala, the Iraqi community, and others.