Iraq is actively pursuing investments in high-capacity overseas refineries to secure steady crude sales and maximize oil revenues, with a sharp focus on fast-growing Asian markets, according to Nizar Al-Shatri, Director General of the State Oil Marketing Organization (SOMO).

“Seventy-five percent of Iraq’s oil exports go to Asia, where demand and refining capacities are rapidly expanding,” Al-Shatri told Asharq. “Investing in foreign refineries allows us to secure fixed refining quotas and shield our exports from price volatility.”

Top buyers like China, India, South Korea, Indonesia, and Malaysia remain key partners in this strategy, with Iraq seeking long-term agreements that guarantee stable prices while sharing profits with refinery operators.

Al-Shatri emphasized, “We aim to work with reputable clients operating high-capacity refineries to absorb price fluctuations without affecting export volumes.”Despite challenges, Iraq remains committed to OPEC+ production quotas, currently capped near 4 million barrels per day (bpd), though its full capacity nears 5.5 million bpd.

“This discipline has helped stabilize the global oil market,” he added.Iraq’s oil exports generated nearly $95 billion in 2024, representing over 90% of the country’s budget revenues.

However, with global oil prices hovering below Iraq’s fiscal breakeven of $92 per barrel, pressures on public finances are mounting.

Al-Shatri also highlighted the use of spot markets to boost revenue, noting that this approach recently yielded an additional $80 million in bonus income.

Founded in 1998, SOMO manages Iraq’s oil sales and domestic fuel imports, playing a critical role in the country’s energy economy.