Iraq Targets Africa After U.S. Ends Waivers on Iranian Energy

Cut off from Iranian energy imports by Washington, Iraq accelerates commercial efforts in Africa while resuming oil exports through Turkey to quickly secure new economic and energy markets.

Partagez:

Iraq, the third-largest oil producer within the Organization of the Petroleum Exporting Countries (OPEC), is currently intensifying its strategy of market diversification, especially towards Africa. This shift comes after the United States recently ended waivers allowing Baghdad to import gas and electricity from Iran, supplies essential for approximately 30% of Iraq’s domestic energy needs. The Iraqi government is now compelled to accelerate its strategic repositioning, notably through a renewed agreement with Turkey, resuming oil exports halted since March 2023. Initially limited to 185,000 barrels per day, these exports are expected to gradually increase.

Resumption of Exports Through Turkey

The relaunch of the pipeline to Turkey’s port of Ceyhan represents a central component of Iraq’s new energy strategy. Previously halted due to legal disputes involving Baghdad, Ankara, and Kurdish regional authorities, these exports should enhance Iraq’s capacity to reach new international markets, particularly in Africa. The Iraqi government thus aims to stabilize its energy revenues, 90% of which rely on oil exports, while reducing its vulnerability to Asian markets, which currently represent over 70% of its outlets.

Concurrently, Iraq’s energy sector is undertaking several initiatives to ensure medium-term energy self-sufficiency. The cessation of Iranian imports forces Baghdad to rapidly invest in reliable alternatives, including acquiring two Floating Storage Regasification Units (FSRU) intended for importing Liquefied Natural Gas (LNG) from Qatar and Oman. These units should be operational by June 2025, significantly reducing energy dependence on Tehran in compliance with U.S. requirements.

Development of Oil Infrastructure

In this context, Baghdad is also focusing on developing strategic oilfields, particularly in the Kirkuk region, through a recent agreement with British Petroleum (BP). This partnership involves increasing oil production and reducing excessive gas flaring, a common practice in the country. Besides consolidating Iraq’s energy independence, this project aims to enhance the competitiveness of Iraqi oil in the African market, an economic area experiencing rapid growth and increasing energy demand.

Lastly, the Iraqi government is actively exploring the establishment of the “Iraq Development Road” project, in collaboration with Turkey, Qatar, and the United Arab Emirates. This logistical corridor project, linking Asia to Europe via Iraq, could significantly enhance trade between Baghdad and several African countries while facilitating access to new markets. Additionally, this initiative could generate substantial additional revenues by diversifying export routes and creating an economically attractive environment for international investors.

These simultaneous actions clearly position Iraq within a strategy of rapid adaptation to current geopolitical and economic constraints, while enhancing its appeal to emerging markets, particularly in Africa. Economic and commercial outcomes of this strategic realignment will be closely monitored by international stakeholders in the energy sector.

British company Prax Group has filed for insolvency, putting hundreds of jobs at its Lindsey oil site at risk, according to Sky News.
Orlen announces the definitive halt of its Russian oil purchases for the Czech Republic, marking the end of deliveries by Rosneft following the contract expiry, amid evolving logistics and diversification of regional supply sources.
Equinor and Shell launch Adura, a new joint venture consolidating their main offshore assets in the United Kingdom, aiming to secure energy supply with an expected production of over 140,000 barrels of oil equivalent per day.
Equinor announces a new oil discovery estimated at between 9 and 15 mn barrels at the Johan Castberg field in the Barents Sea, strengthening the reserve potential in Norway's northern region.
Sierra Leone relaunches an ambitious offshore exploration campaign, using a 3D seismic survey to evaluate up to 60 potential oil blocks before opening a new licensing round as early as next October.
Faced with recurrent shortages, Zambia is reorganising its fuel supply chain, notably issuing licences for operating new tanker trucks and service stations to enhance national energy security and reduce external dependence.
The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
Shell group publicly clarifies it is neither considering discussions nor approaches for a potential takeover of its British rival BP, putting an end to recent media speculation about a possible merger between the two oil giants.
The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.