General Electric Company GE announced Wednesday it had signed two agreements with the Iraqi Ministry of Electricity worth $1.2 billion to bolster and maintain the middle-eastern country’s electric infrastructure.
What Happened: The two agreements will cover the maintenance of power plants across Iraq and will improve the country’s transmission network, according to a GE statement.
The energy veteran said it will work with multiple export credit agencies to secure over $1 billion of financing for the projects.
The agreements were signed in the presence of the Prime Minister of Iraq Mustafa Al Khadimi, and other senior Iraqi and United States government officials.
Why It Matters: The GE deal comes ahead of the first visit to the White House by the Iraqi prime minister on Thursday, Reuters reported.
Chevron Corp CVX is also reportedly expected to sign an agreement with Iraq for developing one of its oil fields.
Deals related to natural gas and power technology are expected to be signed with Honeywell International Inc HON and with Stellar Energy, the Wall Street Journal reported.
Price Action: GE shares closed nearly 0.9% lower at $6.38 on Wednesday and gained 0.16% in the after-hours session.
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