Oil & Gas

Iraq is embarking on a strategic initiative with the American company Honeywell, aiming to construct 7 new oil refineries with capacities reaching 500,000 barrels per day. This effort is part of Iraq's broader plan to convert 40% of its crude oil exports into refined oil derivatives in the near future, as revealed by data from the Washington-based Specialized Energy Platform. The Ministry of Oil's collaboration with Honeywell underscores Baghdad's commitment to achieving self-sufficiency in oil production and transitioning towards increased export capabilities.

Prime Minister Mohammed Shia al-Sudani announced earlier this year the government's ambitious target to reduce the country's reliance on imported oil derivatives, which currently imposes a significant financial burden amounting to billions of dollars annually. Iraq, despite being a major global crude oil producer, faces challenges in meeting domestic demand for refined products, prompting the government to prioritize refinery development.

Deputy Oil Minister Hamed Al-Zobaie highlighted that the collaboration with Honeywell includes a memorandum aimed at enhancing Iraq's refining sector capabilities. The plan focuses on scaling up refining capacity to 40% of crude oil production capacity, which is expected to boost economic returns and support national development goals. The initiative also includes specific projects across multiple provinces, aiming to bolster Iraq's refining infrastructure and meet growing domestic and international demand for oil derivatives.