Iraq aims to cut oil imports by 2024 with boost in domestic refineries

By Al Mayadeen English
Source: Agencies
6 Jan 2024 20:33
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Iraq has been importing oil products, such as reformulated gasoline, to compensate for shortages in the domestic energy market.

A man near the Nihran Bin Omar oil field north of Basra, Iraq, Wednesday, March 22, 2023 (AP)

Iraq intends to reduce oil product imports this year and eventually cease them entirely as the country becomes self-reliant on domestic refineries, stated Asem Jihad, a spokesman for the Iraqi Oil Ministry, in remarks to Sputnik.

"In 2024, Iraq will rely on domestic production more, and after a number of refineries start production, there will be a reduction in the volume of petroleum product imports until they are completely ceased," Jihad said.

Iraq has been importing oil products, such as reformulated gasoline, to compensate for shortages in the domestic energy market.

According to the Observatory of Economic Complexity (OEC), Iraq's primary trading partners for oil imports include Australia and the UAE.

On the other hand, the US has been a major customer of Iraqi oil for several decades.

In the 1980s and early 1990s, Iraq played a substantial role as a major oil supplier to the US. However, after the Gulf War in 1991 and the subsequent imposition of sanctions on Iraq, the oil trade between the two nations experienced a significant decline.

Following the removal of Saddam Hussein in 2003 and the relaxation of sanctions, Iraq was subdued into boosting export volumes for the US.

The US has also been looting oil from Syria and transporting it in convoys to Iraq for several years.

In April 2023, Prime Minister Mohammed Al Sudani emphasized the government's commitment to enhancing the capacities of oil refineries with the goal of gradually eliminating oil product imports into the country.