A delegation from Saudi Arabia that includes Mohammed Abdulrahman al-Ibrahim, assistant oil and gas minister, has reviewed investment opportunities in Iraq during a visit, according to a statement released by Baghdad.

Saudi Aramco officials accompanied the minister and reviewed “a number of investment opportunities in the gas and oil sector”, including both upstream prospects and refinery sites, the statement said.

It added: “The head of the delegation expressed his country's desire to participate and enter into a number of investment projects in the oil and gas sector in Iraq."

Discussions regarding Saudi participation in Iraq’s energy sector are expected to continue in the coming days, according to the statement.

Iraqi Oil Minister Hayan Abdul Ghani said: “This meeting comes as a continuation of the results of the visit of Prime Minister Mohammed Shia al-Sudani to the kingdom and the desire of the two countries to develop bilateral relations.”

He added that both countries should speed up the implementation of joint projects to serve the common interests of their people.

Investment in Iraq

Earlier this month, Saudi Arabia and the UAE allocated $6bn to expand international trade and investment in Iraq.

The president of the Federation of Iraqi Chambers of Commerce, Abdel Razzak al-Zouhairy, said: “The UAE and Saudi Arabia deposited $3bn each to support their operations in Iraq, which include trade and investment activities.”

In recent years, Saudi Arabia and the UAE have sought to use their own resources to try and reduce Iranian influence in Iraq.

In 2015, Riyadh began engaging Baghdad after the kingdom spent years trying to isolate Iraq.

That year, Saudi Arabia appointed an ambassador to Iraq for the first time since 1990.

Between 2017 and 2019, Riyadh’s top diplomat visited Baghdad and Saudi Arabia opened diplomatic missions in Baghdad and Basra.

In November 2020, the Arar border crossing was reopened following its three-decade closure.

Despite the efforts of Saudi Arabia and the UAE, Iraq still needs to maintain good relations with Tehran as it relies on Iran for gas and electricity imports.

Earlier this month, after several days of negotiations, Iraq signed a deal with Iran to pay for Iranian gas using Iraqi crude oil.

It was signed in Baghdad by Ehsan Yassin al-Awadi, the director of the office of Iraq’s prime minister, and Muhammad Kazem al-Sadiq, Iran’s ambassador to Iraq.

The Iraqi prime minister’s office said the deal had been made to address a “power-plant gas supply crisis” related to the complexities of US sanctions.