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After kerosene and kerosene, Iraq achieved self-sufficiency in jet fuel, in a step that practically translated the government’s programs to stop importing oil derivatives and cover local needs completely. While the Ministry of Oil considered this development an important achievement, the Parliamentary Energy Committee confirmed its support for the government’s plans aimed at achieving self-sufficiency in all derivatives, while oil experts believed that exporting them, including jet fuel, increases the state’s revenues by 3 times what is added by exporting crude oil alone .
A major achievement in the refining sector
The Undersecretary of the Ministry of Oil for Refining Affairs, Hamid Younis, said, “The production of jet fuel has reached 2,500 tons per day, of which 1,500 tons cover local needs, while the remaining 1,000 tons are exported through the State Oil Marketing Company (SOMO).” He added, “This great achievement is part of a series of achievements in the refining sector and came as a result of the support provided by Prime Minister Mohammed Shia al-Sudani and Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani, in addition to the efforts of workers in the refining sector.” He stated that “the process of exporting jet fuel is an achievement added to the achievements of the refining sector, as its importance lies in two cases: the first is maximizing financial revenues to the state treasury, and this is part of the Prime Minister’s government program,” noting “continuing to maximize these revenues by raising production capacities and exporting products in excess of consumer needs.” He stated that “the other importance is reaching high-quality products, especially jet fuel, since this product must be of high quality in civil airline aircraft, and this is a great achievement for developing the work of our refineries .”
Development of high quality refining centers
The Prime Minister’s advisor, Mazhar Mohammed Salih, says, “The country’s oil policy is moving towards a strategy of diversifying oil derivatives, as within the next twenty months the country will be completely self-sufficient in gasoline production and will achieve self-sufficiency and stop importing, with the development of high-quality refining centers in Iraq, whether in the refineries of Basra, Karbala, Baiji, and others, or those in the process of technological development .”
He added, “With regard to jet fuel, the available information indicates that the country produces about 5,000 cubic meters of jet fuel per day, as these quantities depend on local production from Iraqi refineries to meet the needs of the local market and export the surplus outside the country .”
Ongoing plans to develop the oil industry
A step that received parliamentary support, expressed by the Oil, Gas and Natural Resources Committee .
Committee member Zainab Juma Al-Moussawi says: “The committee supports plans to increase derivatives production, achieve self-sufficiency and export the surplus through ongoing government plans to develop the country’s oil industry,” Al-Moussawi added. “The committee also relies on developing the oil sector by relying on national companies with the support of foreign companies, as oil represents the lifeblood of the Iraqi economy. Developing the oil sector will result in providing the necessary financial resources for investment in building real human and material capital that will lead to increasing oil production as well as derivatives and developing the rest of the economic sectors.” She continued: “We are anticipating the entry of huge investments in the coming period in the oil refining sector in Iraq, and there are efforts by the government of Prime Minister Mohammed Shia al-Sudani to secure the country’s fuel needs and reduce the import bill .”
A real start to open new markets for Iraq
Oil expert Ahmed Saddam confirms “Achieving self-sufficiency in aviation fuel and, before it, kerosene and kerosene is not limited to self-sufficiency and reducing the import of derivatives only, but rather means the success of the Ministry of Oil’s policy within this framework, as it indicates a relative increase in the level of added value, which contributes to supporting the government’s efforts towards economic diversification .”
He added, “We can also look at this step as an investment in the competitive advantage that Iraq possesses, represented by the abundance of crude oil. Therefore, exporting approximately 800-1000 tons of jet fuel per day can be a real start to opening new markets for Iraq in the energy market, and this matter can encourage the Ministry of Oil to increase production capacities in the field of refining industry to a greater extent .”
He added, “In addition to raising the added value, achieving self-sufficiency represents support for the economy represented by getting rid of financial payments for jet fuel, which means contributing to saving the dollar that was previously paid for imports. We hope that production capacities in the field of gasoline will increase to get rid of importing derivatives that cost the Ministry of Finance approximately 5 billion dollars annually, of which gasoline represents 80% of its value .”
Member of the Parliamentary Oil, Gas and Natural Resources Committee, Zainab Al-Moussawi, confirms that Prime Minister Mohammed Shia Al-Sudani seeks to secure fuel needs and reduce the import bill. Revenues exceed crude oil by 3 times
Derivatives export revenues 3 times crude oil
In turn, oil expert Govind Sherwani says: “The Iraqi Ministry of Oil is making great efforts to meet internal needs and achieve internal sufficiency in petroleum derivatives. Last year, it achieved self-sufficiency in kerosene (white oil) and gas oil (kerosene). Work is now underway to increase the capacity of refineries to produce gasoline. It is hoped that by the end of this year or the beginning of 2025, we will achieve self-sufficiency in gasoline, especially improved gasoline .”
He added, “As for the aircraft gasoline, this is also a new and useful step, as for the first time Iraq is exporting petroleum derivatives in addition to exporting more than 3 million barrels of crude oil .”
He added, “The Ministry of Oil’s plans aim to expand the production of petroleum derivatives to reach self-sufficiency and then start exporting. The issue of exporting, including jet fuel, is very important because it achieves returns and profits three times the export of crude oil, and there are no restrictions on the export of derivatives by OPEC or the OPEC Plus group as there are for crude oil .”
He added, “Therefore, Iraq, which has a great capacity to increase oil production to approximately five or six million barrels per day, can convert this surplus production into oil derivatives, and this of course after expanding the current refineries and building other refineries.”
Resource: Agencies
