Iraq is discussing with Japan possible financing for rehabilitation of its oil sector, industry newsletter MEES reported on Friday.
MEES said talks were still at an early stage, but projects proposed by Iraq's ministry of oil for possible financing included rehabilitation of compressor stations in the north, export infrastructure, and work on refineries in the north and in Basra.
At the end of a donors' conference in Madrid in October last year Japan had pledged some $3.5 billion in medium-term loans and $1.5 billion of grants to Iraq.
MEES said it understood Tokyo would likely prefer to fund any oil sector rehabilitation with loans rather than grants, and only for projects serving the domestic market.
Iraq, which has one of the largest oil reserves in the world, imports about $2 billion worth of refined products a year. It has a nominal refining capacity 550,000 barrels per day, but sabotage and post-war looting have restricted output.
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