The new agreements are designed to reduce dependence on current export routes. The partnership with Oman provides Iraq with improved access to Asian markets.
The Iraqi government signed new energy agreements this week to increase oil production, develop alternative export routes, and address environmental challenges. Partnerships with Oman and international firms represent a significant advancement as Iraq works to safeguard its economy during heightened Gulf tensions.
Nearly all of Iraq’s oil exports pass through the Gulf, where geopolitical instability threatens key shipping routes. The planned export increase comes amid global market uncertainty and regional tensions. As OPEC’s second-largest producer, Iraq seeks to expand output to meet global demand and rising domestic spending, given oil’s central role in its economy.
The new agreements are designed to reduce dependence on current export routes. The partnership with Oman provides Iraq with improved access to Asian markets and more reliable delivery options than Basra.
Talks continue for a Basra-Oman pipeline to further diversify and boost delivery capacity. “Discussions are ongoing about building a full pipeline from Basra to Oman to diversify export outlets, boost capacity, and support production growth,” said Ali Nizar Al-Shatri, SOMO’s General Manager, to INA on Friday.
Al-Shatri confirmed that SOMO and Oman’s OQ Trading agreed to cooperate, with contract talks underway.
Quantum Commodity Intelligence reports Iraq’s crude exports were stable in August 2025 at 3.38 million barrels per day. This marks a notable increase over previous months, underscoring Iraq’s drive to boost exports. In July, SOMO reported total exports of 104.75 million barrels.
Iraq’s Prime Minister, Mohammed Shia Al-Sudani, last week addressed the Baghdad International Energy Forum and argued that Iraq’s 150 billion barrels of reserves and century-long supply capability make a stronger case for increasing the country’s export quota in line with its national output capabilities.
On Sunday, Al-Sudani and Hayan Abulghani, Iraq’s Minister of Oil, attended the signing ceremony of the Common Seawater Supply Project (CSSP) and Ratawi oil field redevelopment. TotalEnergies and QatarEnergy are partnering with Iraq’s Basra Oil Company on major Gas Growth Integrated Project (GGIP) initiatives.
Al-Sudani commended the parties on finalising the agreements, noting that increased Qatari and international investment demonstrates Iraq’s improving business environment. He reiterated Iraq’s openness to reputable firms for infrastructure, economic development, and public service projects.
The GGIP targets four areas: natural gas, solar energy, oil, and water. The CSSP (Common Seawater Supply Project) will build a seawater treatment plant near Um Qasr to deliver five million barrels of treated seawater daily to southern oil fields, helping to conserve freshwater.
Ratawi upgrades have started. The first phase targets 120,000 barrels per day by early 2026. The second phase, set for 2028, will increase output to 210,000 barrels per day and end routine gas flaring. Environmental protection is central to these projects. The Gas Midstream Project will process all gas from Ratawi and clean flared gas from other fields. This gas will power 1.5 million homes. A facility will process 50 million cubic feet daily starting in 2026, aligned with Ratawi’s initial phase.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said in a statement, “In under two years, TotalEnergies and its partners met commitments and launched all parts of this multi-energy scheme to boost Iraq’s economy and create 7,000 construction jobs. Gas, oil, and solar projects begin by early 2026.”
These agreements highlight Iraq’s commitment to modernising its energy sector, strengthening its economy, and addressing environmental challenges. Officials anticipate that international support and investment will position Iraq as a global energy leader and promote sustainability.
