Lebanese Energy Minister Walid Fayyad signed a new MoU with Iraq’s Oil Minister Hayan Abdulghani on 21 July to renew a swap deal under which Baghdad (indirectly) supplies fuel for the beleaguered power sector of the East Mediterranean state (MEES, 19 August 2022). Iraq will increase the current HFO volumes exchanged from 1mn tons (6.5mn barrels) to 1.5mn tons (9.75mn barrels) and will also compensate for missing deliveries under the existing deal by October.
Iraq’s fuel oil falls short of Lebanon’s standards and a convoluted swap deal was arranged whereby Iraq and Lebanon find a third party to take delivery of the Iraqi fuel oil and in return supply Lebanon with suitable products of equivalent value (MEES, 17 September 2021). Additionally, the “parties will sign a new agreement” whereby Iraq provides up to 2mn tons (14.66mn barrels) of crude oil which Beirut is to exchange for fuels “in accordance with the specifications of electricity plants,” according to a 21 July press release by Lebanon’s Energy Ministry. Under the swap, Iraq would receive payment in services. (CONTINUED - 173 WORDS)