Iraq Explores Oil Exports to Africa Amid Market Expansion Plans – Oil Minister

Baghdad-INA

Iraq is assessing the possibility of exporting crude oil to African markets as part of its broader strategy to diversify export destinations, Oil Minister Hayan Abdul Ghani said.

“The government is evaluating the feasibility of entering African markets, with transparent and competitive bidding as the cornerstone of our approach,” Abdul Ghani told Al-Iraqiya News in an interview followed by the Iraqi News Agency (INA).

Basra Oil Company oversees all aspects of the country’s oil operations, he said, adding that most oil projects suffered extensive damage in 1991. The post-war reconstruction process provided valuable expertise in restoring production capacity.

Iraq has signed 44 contracts under recent oil licensing rounds, with 14 provinces included. Basra has the largest share with 12 contracts. Oil exports range between 3.2 million and 3.5 million barrels per day, with 70% shipped to Asia. China remains the largest buyer, followed by India.

Abdul Ghani said eight major OPEC members have implemented voluntary production cuts as part of the organization’s strategy to stabilize the global market. Iraq is committed to this policy, he said, while denying any effort to exclude Western firms from contracts.

“All companies have been invited to participate in the fifth and sixth licensing rounds,” he said. However, U.S. firms have played only a limited role in these rounds. He stressed that licensing decisions are based on technical considerations, not political ones.

Most oil sector equipment in Iraq is sourced from the United States and Europe, he said, adding that ExxonMobil voluntarily withdrew from the West Qurna 1 field.

Abdul Ghani said Iraq maintains transparency in oil sector operations and facilitates investment for companies with strong operational efficiency.

The country is also advancing renewable energy projects, he said. A solar power plant developed by France’s TotalEnergies is set to generate 1,000 megawatts.

The government has allocated $16 per barrel for oil production costs in the Kurdistan region, while the Rumaila field produces 1.4 million barrels per day.

Iraq expects to export 350,000 barrels per day through Turkey’s Ceyhan port, but the federal Oil Ministry does not oversee production in Kurdistan. “We have informed OPEC that Kurdistan is currently producing 286,000 barrels per day,” Abdul Ghani said.

SOMO, Iraq’s Oil Marketing Company, sells crude only to companies with refining capacity, and shipments are tracked via satellite to ensure transparency. All contracts must specify final export destinations, he said, adding that Iraq publishes monthly reports on export volumes and revenues.

Some Iranian oil tankers used forged Iraqi documents to evade sanctions, Abdul Ghani said. “We have formally notified U.S. authorities that these documents were falsified and that Iraq had no involvement.”