Oil Minister: Iraq Aims to Boost Energy Production, Exports, and Refinery Development
Iraq's Oil Minister, Basim Mohammed Khudair, affirmed that the ministry is implementing a comprehensive strategy to develop the oil and gas sector. This strategy focuses on increasing production and exports, diversifying export outlets, developing refineries, investing in gas and reducing flaring, alongside bolstering Iraqi companies' participation and building national capacities. This statement was made during the inauguration of the Iraq Oil and Gas, Projects, and Licensing Rounds Exhibition. Khudair explained that international companies, with continuous government support, have achieved significant milestones, most notably raising oil exports from approximately 200,000 barrels per day at the start of the current government's term to over 3 million barrels per day during September. Regarding the diversification of export channels, Khudair highlighted the signing of the Iraqi-Turkish agreement, which aims to reactivate and strengthen the northern outlet and open new routes for Iraqi oil. He also mentioned progress in strategic projects in cooperation with a consortium of US companies Chevron and TI, and the Qatari partner UCC, to connect Basra with Faysh Khabur, with a branch extending towards Baniyas, thereby enhancing the security of Iraqi exports and providing greater flexibility in reaching global markets. The Minister further noted the signing of several important agreements, in the presence of the Prime Minister, to develop oil fields and exploration blocks, and to implement strategic projects for oil infrastructure. Khudair clarified that the refining sector is among the priorities for the upcoming phase, emphasizing that the objective is no longer limited to increasing crude oil production and export. Instead, it involves expanding refining capacities, ensuring sustained production, and meeting local consumption demands. He pointed to a plan to develop refineries to achieve, as a first stage, self-sufficiency, and then to export refined products. He announced that investment opportunities in this vital economic sector would be declared soon, inviting all companies and investors to compete. He also confirmed the ministry's success, after intensive negotiations, in persuading the Japanese company JGC to return to Iraq and resume work on the FCC project in southern refineries. This represents a crucial step in increasing the production of oil derivatives and maximizing the added value of Iraqi oil. The ministry's vision for the next phase is built on creating a more integrated oil sector through increased production and exports, diversified export outlets, refinery development, gas investment and reduced flaring, and enhanced partnership with Iraqi companies to build national capabilities. The vision also encompasses combating corruption in all its forms and dealing with international companies and subcontractors with transparency and integrity to foster an effective investment environment that ensures mutual objectives are met. Khudair welcomed the international companies participating in the conference, stressing that Iraq possesses vast investment opportunities in exploration, production, gas, refining, infrastructure, and oil services. He affirmed the Ministry of Oil's commitment to building genuine partnerships that serve common interests. He concluded his remarks by stating that the coming phase marks a new beginning, shifting from crisis management to building sustainable solutions, from crude oil export to maximizing its added value, from gas flaring to its investment, and from importing petroleum products to producing them domestically to achieve self-sufficiency. In closing his speech, Khudair expressed his hope that the conference and exhibition would serve as a platform for launching more projects and partnerships that contribute to the development of the oil and gas sector and achieve sustainable development for Iraq.
