Trump says US to strike major oil deals with Iraq, boost American energy interests

WEB DESK: US President Donald Trump on Tuesday said the United States would pursue major economic agreements with Iraq, particularly in the energy sector, while announcing plans to increase oil cooperation between the two countries.

Speaking to reporters ahead of his meeting with Iraqi Prime Minister Ali al-Zaidi, Trump said Iraq had “tremendous potential” because of its oil reserves and that upcoming deals would create jobs in both countries.

 “We’re going to be doing a lot of deals. We’re going to create a lot of jobs for both countries, and we’re going to be taking out a lot of oil,” Trump said, without providing further details.

The US president added that a significant amount of Iraqi oil was already being produced by American companies, saying, “A lot of oil is coming out, and the American companies are doing it– mostly American companies now.”

Trump is scheduled to meet Prime Minister Ali al-Zaidi on Wednesday as Iraq seeks increased US investment in its oil, gas and power sectors following the economic impact of the Iran war, which affected crude production and state revenues.

Meanwhile, Zaidi said Iraq should receive a fair share within the Organisation of the Petroleum Exporting Countries (OPEC), rejecting speculation that Baghdad may consider leaving the oil-producing alliance.

 “Iraq is one of the founding members of OPEC. Our right is to receive a fair share for Iraq,” Zaidi told reporters during a bilateral meeting at the White House.

The Iraqi premier highlighted the long-term consequences of conflicts with the Islamic State, saying the country had suffered extensive damage to infrastructure and that reconstruction remained a major challenge.

 “The damage suffered by Iraq exceeds $400 billion, and some Iraqis are still living in camps due to destroyed homes,” Zaidi said, adding that his government had a plan to return displaced citizens to their homes.

He said securing a fair position within OPEC was essential to rebuilding Iraq and supporting its economic recovery.