Iraq has picked a Chinese state-owned oil producer and trader to pay it upfront for oil, providing much-needed cash to the Iraqi government which has been struggling to make ends meet since the oil price collapse earlier this year. OPEC’s second-largest producer has selected state-held China ZhenHua Oil Co as the winning bidder to supply 130,000 bpd for five years, with an upfront payment for the first year of supply, Bloomberg reported , quoting sources with knowledge of the plans. Iraq’s State Oil Marketing Organization (SOMO) has received a lot of interest from major oil traders about the deal it was pitching to companies in recent weeks, according to Bloomberg’s sources. In the end, SOMO has chosen China ZhenHua Oil, Bloomberg’s sources say. The upfront payment for the first year of oil supply will result in Iraq receiving around US$2 billion, according to Bloomberg calculations. While lending cash in […]