Please ensure Javascript is enabled for purposes of website accessibility

GE Inks Iraq Deals Worth Over $1.2 Billion

By Howard Smith – Aug 20, 2020 at 10:09AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The power projects are for upgrades and maintenance to the country's power grid.

General Electric (GE -0.19%) announced a power agreement with the government of Iraq on Wednesday to upgrade, maintain and reinforce Iraq's electricity transmission network. The agreement is in the form of two projects. One, worth $500 million, will have GE's gas power business working with key power plants that supply over 6 gigawatts (GW) to the country. Another, for $727 million, is for GE's grid solutions to reinforce the country's transmission network and its connection with Jordan's power grid. 

GE also said it will help with plans for financing over $1 billion for the projects by working with multiple export credit agencies. 

power transmission lines in a desert with background mountains

Image source: Getty Images.

Upon signing the contracts, Iraq's minister of electricity said the primary goal is to ensure uninterrupted power, particularly during the summer months. He noted the existing relationship with GE, saying the agreement "builds on the strong partnership we have with the company to deliver more power for the nation." 

The deal comes in advance of the Iraqi prime minister's first-ever visit to the White House. The U.S. Department of Energy announced that agreements worth a total of up to $8 billion were reached on Wednesday between U.S. energy companies and the Iraqi government. 

Besides the GE power agreements, Honeywell International (HON -0.76%), Baker Hughes (BKR -5.89%), and Chevron (CVX -2.63%) agreed to partnerships with the Iraqi Ministry of Oil. GE's service agreement builds on over 1.5 GW of new generation capacity that the company has added in Iraq since December 2019.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

General Electric Company Stock Quote
General Electric Company
GE
$64.35 (-0.19%) $0.12
Chevron Corporation Stock Quote
Chevron Corporation
CVX
$140.96 (-2.63%) $-3.81
Honeywell International Inc. Stock Quote
Honeywell International Inc.
HON
$170.07 (-0.76%) $-1.31
Baker Hughes Company Stock Quote
Baker Hughes Company
BKR
$20.45 (-5.89%) $-1.28

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.