Iraq Seeks to Diversify Its Oil Markets Towards Africa and Europe

Iraq explores new markets for its crude oil, targeting Europe and Africa to reduce dependence on China and India, its current main importers.

Share:

Comprehensive energy news coverage, updated nonstop

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

7-Day Pass

Up to 50 articles accessible for 7 days, with no automatic renewal

3 €/week*

FREE ACCOUNT

3 articles/month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 30,000 articles • 150+ analyses per week

Iraq, one of the world’s leading oil producers, is striving to diversify its energy outlets beyond its historical clients in Asia. According to Fuad Hussein, Iraq’s Foreign Minister, discussions are ongoing with several European countries, and diplomatic initiatives have begun with African nations to assess export opportunities.

The country currently produces 4.6 million barrels per day (b/d), of which 3.6 million are allocated for export, while one million barrels are consumed domestically. While China and India still account for a significant share of Iraqi exports, this initiative aims to broaden Iraq’s oil reach to other strategic global markets.

The Importance of Diversification

In October, China imported 41% of Iraq’s seaborne exports, equivalent to 1.34 million b/d. India, on the other hand, absorbed 28% of these volumes, reflecting a significant reliance on two markets. Hussein emphasized the importance of retaining these market shares while establishing a broader presence, particularly in Europe, which could offer substantial medium-term opportunities.

China’s Presence in Iraq

China remains a key player in Iraq’s energy ecosystem. Beyond massive oil imports, Chinese companies hold stakes in several oil and gas projects. For instance, the Halfaya gas processing complex, built and operated by the China National Petroleum Corporation (CNPC), is a major pillar of Iraq’s energy infrastructure.

In May, during the latest licensing round for oil and gas, Chinese companies were awarded 10 of the 13 available projects, further cementing their growing influence over Iraq’s energy sector.

Prospects in Africa

Opening up to African markets represents a novel approach. Although negotiations are still in their early stages, Iraq’s Foreign Ministry views the continent as a strategic region due to its growing energy demand and economic potential. This orientation could also strengthen diplomatic relations between Iraq and African nations.

The State Duma has approved Russia’s formal withdrawal from a treaty signed with the United States on the elimination of military-grade plutonium, ending over two decades of strategic nuclear cooperation.
Polish Prime Minister Donald Tusk said it was not in Poland’s interest to extradite to Germany a Ukrainian citizen suspected of taking part in the explosions that damaged the Nord Stream gas pipelines in 2022.
Al-Harfi and SCLCO signed agreements with Syrian authorities to develop solar and wind capacity, amid an ongoing energy rapprochement between Riyadh and Damascus.
Faced with risks to Middle Eastern supply chains, Thai and Japanese refiners are turning to US crude, backed by tariff incentives and strategies aligned with ongoing bilateral trade discussions.
France intercepted a tanker linked to Russian exports, prompting Emmanuel Macron to call for a coordinated European response to hinder vessels bypassing oil sanctions.
The activation of the snapback mechanism reinstates all UN sanctions on Iran, directly affecting the defence, financial and maritime trade sectors.
Commissioner Dan Jørgensen visits Greenland to expand energy ties with the European Union, amid plans to double EU funding for the 2028–2034 period.
European and Iranian foreign ministers meet in New York to try to prevent the reinstatement of UN sanctions linked to Tehran’s nuclear programme.
Canadian Prime Minister Mark Carney announces a bilateral agreement with Mexico including targeted investments in energy corridors, logistics infrastructure and cross-border security.
The US president has called for an immediate end to Russian oil imports by NATO countries, denouncing a strategic contradiction as sanctions against Moscow are being considered.
Tehran withdrew a resolution denouncing attacks on its nuclear facilities, citing US pressure on IAEA members who feared suspension of Washington’s voluntary contributions.
Poland’s energy minister calls on European Union member states to collectively commit to halting Russian oil purchases within two years, citing increasing geopolitical risks.
Athens and Tripoli engage in a negotiation process to define their exclusive economic zones in the Mediterranean, amid geopolitical tensions and underwater energy stakes.
European powers demand concrete steps from Tehran on nuclear issue or United Nations sanctions will be reinstated, as IAEA inspections remain blocked and tensions with Washington persist.
Brussels confirms its target to end all Russian energy imports by 2028, despite growing diplomatic pressure from Washington amid the ongoing conflict in Ukraine.
Donald Trump threatens to escalate US sanctions against Russia, but only if NATO member states stop all Russian oil imports, which remain active via certain pipelines.
The two countries agreed to develop infrastructure dedicated to liquefied natural gas to strengthen Europe's energy security and boost transatlantic trade.
Ayatollah Ali Khamenei calls for modernising the oil industry and expanding export markets as Tehran faces the possible reactivation of 2015 nuclear deal sanctions.
The Ukrainian president demanded that Slovakia end its imports of Russian crude, offering an alternative supply solution amid ongoing war and growing diplomatic tensions over the Druzhba pipeline.
The United States cuts tariffs on Japanese imports to 15%, while Tokyo launches a massive investment plan targeting American energy, industry, and agriculture.

All the latest energy news, all the time

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

7 DAY PASS

Up to 50 items can be consulted for 7 days,
without automatic renewal

3€/week*

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.