The war with Iran forced Iraq to change its oil routes
Iraq is preparing to expand its oil exports through Syria following supply issues via the Persian Gulf. Officials in Baghdad say they want to have more routes for selling crude oil, and they plan to use this new route even after the war between Iran and Israel ends.
Iraq intends to increase exports of crude oil and petroleum products through Syrian territory. Officials in Baghdad explain this decision as a necessity to have backup routes amid transportation problems through the Persian Gulf. Reuters reports this, citing representatives of the Iraqi Ministry of Oil.
According to ministry spokesman Salim al-Rikabi, diversifying export routes is currently one of the government’s top priorities. “The Iraqi government and the Ministry of Oil attach the utmost importance to diversifying crude oil export routes, particularly through Syrian territory,” he said. The new route is intended to be an extension of the existing scheme, under which Iraq supplies fuel oil through the Syrian port of Baniyas on the Mediterranean coast.
The need to find an alternative arose after exports through the Persian Gulf became significantly more difficult due to hostilities around Iran and the situation in the Strait of Hormuz. This is particularly important for Iraq, as the country is the second-largest oil producer among OPEC members in terms of output. Most of its exports have traditionally passed through routes in the Persian Gulf.
The Ministry of Oil emphasizes that the plans regarding Syria are not a temporary solution. According to Iraqi officials, even after the war ends and normal shipping through the Strait of Hormuz resumes, the country will not abandon this new route.
Baghdad wants to avoid a situation where the operation of a single route could affect the country’s entire oil industry. Negotiations with the Syrian side are ongoing. They are being handled by the state-owned company SOMO, which is responsible for Iraqi oil exports. The discussions cover not only crude oil but also naphtha and other petroleum products.
In this way, Iraq is trying to make its export system more flexible and less dependent on the situation in the Persian Gulf. Baghdad hopes that the new route through Syria will help secure supplies and reduce risks for the oil sector in the future, according to Reuters.
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