Iraq oil exports strategy now focuses on expanding partnerships with foreign refineries, especially in fast-growing Asian markets. Iraq seeks stronger oil sales and steady income through direct deals with reliable buyers.
Officials at the State Oil Marketing Organization (SOMO) confirmed this shift. They aim to invest in large refineries overseas to secure long-term export stability. Asia continues to dominate Iraq’s oil market, receiving around 75% of total exports.
Countries like China, India, South Korea, Indonesia, and Malaysia buy most of Iraq’s crude. These nations show strong demand and continue expanding their refining capacity. That makes them ideal partners for Iraq’s long-term strategy.
SOMO plans to lock in refining quotas with trustworthy clients. These deals help reduce the risk of market price swings and protect export volumes. Iraq prefers working with clients that own or manage high-capacity refineries.
Through these refinery partnerships, Iraq sells oil at official prices. During market spikes, Iraq keeps 65% of the price gain, while partners take 35%. If market prices fall, the foreign partners cover the losses. This structure gives Iraq stable income without taking on heavy risks.
The Iraq oil exports strategy also involves deals beyond Asia. SOMO is forming partnerships with refineries in Europe, Africa, and the Americas. These broader connections help Iraq reach more buyers and strengthen trade relations.
Iraq continues to respect its OPEC+ quota, which limits production to around 4 million barrels per day. However, Iraq’s full oil capacity stands near 5.5 million barrels per day. Leaders still follow the agreement to help keep the global oil market stable.
Officials also noted that Iraq includes associated gas and condensates in some production data. These elements improve oil quality but are not crude oil. Iraq separates them in official reports.
In one recent year, Iraq exported nearly 1.2 billion barrels of oil. These exports brought in close to $95 billion, covering more than 90% of Iraq’s national budget. The spot market also added extra profits, including a bonus income of $80 million.
The Iraq oil exports strategy supports long-term economic growth. However, Iraq still depends on high oil prices to balance its budget. Analysts say the country needs oil near $92 per barrel, while current global prices remain much lower.