Iraq signs MoU with Siemens in energy sector

ERBIL, Kurdistan Region - Iraq’s Prime Minister Mohammed Shia’ al-Sudani on Friday announced that he has signed a memorandum of understanding with the German company, Siemens, to improve his country’s energy sector. 

Sudani said during a press conference with the Chancellor of Germany Olaf Scholz in Berlin on Friday that his cabinet had signed a memorandum of understanding with the German energy giant Siemens to increase energy production, improve its transportation and reduce waste as well as maintaining energy stability. 

“Iraq is an important country in the field of energy in terms of oil production and strategic storage, and we have plans to invest in natural gas, and we have large reserves that have not been invested," said Sudani, calling on German companies to "invest in the gas sector."

"We have an understanding with Siemens in training and raising workers' efficiency to create an industry capable of securing the requirements of electric power transmission projects and providing job opportunities," said the Iraqi prime minister. 

A spokesperson for Siemens told Reuters on Friday that the company plans to expand its cooperation with the Iraqi government by developing the country’s power sector and renewable energies.

Sudani's office said in a statement that that the MoU includes "the signing of a long-term agreement to maintain and rehabilitate units operating in Iraq established by Siemens, as well as the implementation of renewable energy projects, namely solar energy and wind energy, and the building of transmission stations in all regions of Iraq, in addition to capacity building and training for the Ministry of Electricity staff members." 

Salar Mohammed Amin, head of Iraqi investment board, told Rudaw’s Alla Shally that Sudani asked the German Chancellor to help Iraq in terms of gas, industry and petrochemicals. “We asked the German companies to take part in this [process].”

“Regarding Siemens, we signed 2-3 agreements,” he noted.

He also said that they spoke with Lufthansa airlines officials to help Iraq in terms of aerospace. 

Erbil and Baghdad relations have been thorny for years due to several issues, including disagreements over the energy sector. 

The head of Iraq’s investment board said that the German chancellor asked Sudani about this issue. The Iraqi prime minister answered by saying that they have a political agreement with Erbil to resolve the issue.