Iraq has reportedly awarded a Chinese company a deal which would see it paying $2 billion upfront for a year’s supply of oil.

Alaa al-Yasiri, General Manager of State Oil Marketing Organization (SOMO) told Iraqi News Agency (INA) that a Chinese company had won the contract ahead of a European company, but did not identify the company.

Bloomberg had previously reported that China’s ZhenHua Oil was poised to sign the contract.