Iraqi PM Visits China Seeking New Investment Sources

Posted July 18th, 2011 at 5:30 am (UTC-5)
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Iraqi Prime Minister Nouri al Maliki is in Beijing for high-level talks aimed at securing investment in the reconstruction of his war-ravaged country.

Mr. Maliki is expected to meet with Chinese President Hu Jintao, Premier Wen Jiabao and other officials during his first visit to China, which winds up Thursday.

In an exclusive interview with China Central Television, Mr. Maliki said Iraq needs to make the best use of its oil and gas in order to finance its rebuilding needs.

He said he hopes to get more Chinese companies to join in the construction of Iraq’s infrastructure as well as in the power, crude oil and other important industries.

Chinese foreign ministry spokesman Hong Lei said ahead of Mr. Maliki’s arrival late Sunday that China is ready to work with the international community and to continue to provide assistance for the Iraqi people to improve their livelihoods.

China, which needs new energy sources to feed its rapid industrial growth, has become a key investor in Iraq’s oil and gas sector.

Its largest state oil company, China National Petroleum Corporation, announced last month that it has begun pumping oil at the Al-Ahdab field 180 kilometers southeast of Baghdad, the first new oil project to get under way in Iraq in more than 20 years.

China signed the deal in 1996 with then Iraqi leader Saddam Hussein, but implementation was delayed by international sanctions and the U.S.-led invasion in 2003. The deal was renegotiated in November 2008 on terms under which Iraq retains ownership and pays the Chinese company a fee for services on every barrel pumped.