Iraq looks to export crude to Africa and Europe: Iraqi foreign minister

Iraq is looking at Africa and Europe to export crude and diversify its export markets beyond India and China, the country's Foreign Minister Fuad Hussein told S&P Global Commodity Insights on the sidelines of the Middle East Peace and Security Forum (MEPS) in Duhok Nov. 23.

Iraq produces 4.6 million b/d, exporting 3.6 million b/d and consuming 1 million b/d domestically, according to Hussein, and has "started to search for other markets," with negotiations begun with some European countries. The country's Ministry of Foreign Affairs has also begun outreach to African nations to establish diplomatic ties and eventually assess if Iraqi crude could be exported to them.

"We are planning to have a wider market for Iraqi oil than [what is] limited to China and India," he said. "Of course, we want to keep our share in the Chinese market and Indian market. It's very important for us."

In October, Iraq shipped 1.34 million b/d, or 41% of its seaborne exports to China, which took 7.7 million barrels of heavy crude and 34.03 million barrels of medium crude. India received 28% of Iraq's exports, taking 16.27 million barrels of heavy and 11.95 million barrels of medium grade.

China is consistently one of the biggest importers of Iraqi crude and has invested heavily in the Gulf country to secure its domestic energy needs. Additionally, Chinese companies operate 7.27% of current and future licensed oil and gas development projects in Iraq, according to Commodity Insights analysis.

Chinese companies own interests in five oil refineries and seven gas processing plants in Iraq, including the Halfaya gas processing complex built and operated by state-owned CNPC, Commodity Insights data shows.

That excludes the latest licensing round in May, in which Chinese companies were awarded 10 of the 13 oil and gas projects awarded.