"CPC has reached agreement with SOMO on importing 1.8 million barrels of Iraqi oil between July 1 and December 31, averaging 1,000 barrels a day," CNA said.

During the rule of Saddam Hussein, CPC tried to import Iraqi oil but all efforts failed, possibly due to lack of diplomatic ties between Taipei and Baghdad.

"As the situation in Iraq is still not stable, this is only our initial contact to establish a relationship of trust and friendship, When this contract expires, we will review if we will sign a new contract," Pan said.