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Reuters, 24 April 2016

The power boost will support oil infrastructure.

Iraq’s Oil Ministry said on Sunday it had signed a long-term “strategic framework agreement” with General Electric which comprised several projects to boost national power resources.

The ministry said in a statement one of the projects would generate more than 400 megawatts (MW) for oil installations by summer. Other initiatives aim to maintain existing infrastructure and reduce gas flaring from oil fields to boost electricity production for use in the industrial and energy sectors.

The ministry did not specify the agreement’s value or timeframe but said it was the result of two years of negotiations.

Though Iraq is a major OPEC oil producer, the country faces chronic electricity shortages, with its fragile grid struggling meet demand after years of war, sanctions and neglect. Many areas lack access to electricity or drinking water, prompting demonstrations by thousands of Iraqis last year to press the government to improve delivery of essential services.