“In two months, Iraq will officially announce self-sufficiency in oil derivatives and halt imports,” Sudani said at the Al-Rafidain Forum for Dialogue in Baghdad.
The milestone will “save $3.2 billion,” Sudani added.
Sudani’s government has eyed self-sufficiency in several energy-related sectors, especially oil and gas. Last year, the prime minister said that the country will be entirely self-sufficient in gas and become an exporter within 3-5 years.
While delivering his speech, he also announced that “within 3-5 years, Iraq plans to completely end gas flaring.”
In late February, Iraq reopened its largest oil refinery in Baiji, northern Salahaddin province, nearly a decade after it was captured by Islamic State (ISIS) militants.
“With this achievement, were are getting closer to meet Iraq’s [oil] derivative needs no later than mid next year,” Sudani’s office said at the time. “Halting oil derivatives will save billions of dollars … that can be reallocated to other public services and economic sectors, marking significant reform.”
In August, Sudani launched the isomerization unit at Baiji refinery, which works on enhancing the value of oil products by changing its molecular shape and raising its octane.
In July, Iraq inked a mega $27 billion contract with French TotalEnergies that will see the energy giant build four projects for oil, gas, and renewables in southern Iraq over 25 years. The contract was initially signed in 2021 but faced a delay due to disagreements over Iraq’s stake in the deal as Baghdad demanded a 40 percent share.
The deal, however, was agreed upon early April and TotalEnergies will have the lion’s share with a 45 percent stake of the so-called Gas Growth Integrated Project (GGIP), followed by Iraqi state-owned Basra Oil Company with 30 percent, and QatarEnergy with 25 percent.
It marked the biggest foreign investment in the conflict-ridden country’s history.
Iraq is still one of the world’s largest gas flaring countries. The flaring process is when oil wells burn the excess gas they can't store or use, and is a convenient way to deal with the waste product known as associated petroleum gas, however the process is among the main reasons for global climate change.
Oil is Iraq’s main source of income, relied on to cover government costs and pay civil servant salaries. The country pocketed $97.5 billion from oil sales in 2023, a significant decline from 2022’s record-setting $115 billion.
Iraq exported over 99.5 million barrels of oil in February, at an average rate of 3.4 million bpd, according to the oil ministry’s monthly report released on Sunday. More than 103.5 million barrels were exported in January, averaging 3.3 million bpd.
