Iraq prepares for oil self-sufficiency, aims to save billions
(MENAFN) During the "Al-Rafidain Forum for Dialogue 2024" in Baghdad, Prime Minister Muhammad Shia Al-Sudani announced Iraq's imminent declaration of self-sufficiency in oil derivatives within the next two months. This strategic move, aimed at ceasing imports, is projected to yield significant savings, estimated at USD3.2 billion. Al-Sudani emphasized the pivotal role of economic reform in the government's agenda, highlighting the imperative of addressing the nation's reliance on imported oil derivatives, a burden costing billions.
Central to this transformative agenda is the recent operationalization of key refineries, notably the Karbala refinery in the south and the resumption of operations at the Baiji refinery in the north after its suspension in 2014. These developments mark significant strides towards Iraq's goal of weaning itself off dependency on foreign oil products.
Presently, Iraq boasts a robust crude oil production exceeding 4 million barrels per day. However, the nation still grapples with substantial imports of essential oil derivatives, including gas oil, gasoline, white oil, and natural gas, totaling approximately 25 million liters daily. The impending shift towards self-sufficiency signifies a decisive step towards enhancing economic resilience and reducing financial strain on the nation's coffers.
Al-Sudani's declaration underscores the government's commitment to fostering sustainable economic growth and reducing dependency on external sources for vital energy resources. By harnessing its substantial oil production capacity to meet domestic demands, Iraq aims to bolster its economic autonomy and fortify its position as a regional energy powerhouse.
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