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By N Saeed

Iraq is working on implementing a comprehensive strategy to develop the oil and gas sector with the help of foreign companies, oil minister Bassim Khudair has said.

The strategy includes increasing production and exports, diversifying export routes, upgrading refineries, investing in gas and reducing flaring, as well as enhancing the participation of Iraqi companies and building national capabilities, he said after opening an oil and gas projects exhibition in Baghdad on Tuesday.

"With the continued support of the government, international companies have achieved significant progress, most notably increasing oil exports from 200,000 barrels per day (bpd) when the government took office to more than 3 million bpd this month,” he said."

The diversification of export routes was achieved through the signing of the Iraqi-Turkish agreement, which contributes to reactivating and strengthening the northern export route and opening new paths for Iraqi oil,” he added.

Khudair noted that major projects would be launched soon, including construction of a pipeline from Basra to Baniyas in Syria, adding that it would be expected by a consortium of American companies Chevron and TI Capital, along with their Qatari partner UCC Holding.

He said a number of important agreements were signed during the Prime Minister's recent visit to the US to develop oil fields and exploration blocks, and to implement strategic oil infrastructure projects.

He said the refining sector has been placed among the priorities for the next phase, because the goal is no longer limited to increasing crude oil production and exports, but rather to expanding refining capacities, ensuring the sustainability of production, meeting domestic consumption, and developing a plan to upgrade refineries and, as a first step, achieve self-sufficiency, and then export refined petroleum products.

“The Ministry, after intensive negotiations, succeeded in convincing the Japanese company JGC to return to Iraq and resume work on the FCC project at the southern refineries, which represents an important step in increasing the production of refined petroleum products and maximising the added value of Iraqi oil."

"Iraq possesses vast investment opportunities in the fields of exploration, production, gas, refining, infrastructure, and oil services…the ministry is keen to build genuine partnerships that achieve common interests."

(Writing by N Saeed; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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