The US on Tuesday welcomed a $27 billion deal between Iraq and France's TotalEnergies that is expected to boost the country's oil production and help it on its way to energy self-sufficiency.
White House National Security Adviser Jake Sullivan called it a “massive deal” and said American companies were expected to be involved.
The deal, “which will include participation from regional and American companies, is a major step towards both establishing Iraq’s energy self-sufficiency and meeting its climate goals”, Mr Sullivan said.
Despite significant oil reserves, Iraq has long struggled with electricity shortages.
The country has been experiencing a severe energy crisis largely due to political instability and lack of investment in infrastructure.
Iraqis frequently have to deal with widespread power cuts, especially during the summer months.
“This energy and gas capture project, together with the ongoing programmes to connect Iraq’s electricity grid to the grids in the GCC and Jordan, will significantly enhance Iraq’s energy security and the reliability of its electricity network for the benefit of the Iraqi people,” Mr Sullivan said.
The US State Department said it believed the deal would help Iraq to attract significant foreign investment.
“Concluding this deal also signals a fast-improving business climate that will help attract the foreign investments needed to generate economic opportunity for all Iraqis,” said State Department spokesman Matthew Miller.
On Tuesday, Iraq agreed to supply Iran with crude oil in exchange for gas, a move that is expected to help end the country's gas crisis.
