Jun 6 2012

Iraq’s imports of Iranian petroleum products to hit $2 billion

By Razaq Nameq

Iran is turning as much of its petroleum as possible into byproducts and selling it mainly to neighboring states, including the oil-rich Iraq.

Iraqi exports of Iranian oil byproducts have skyrocketed to $1.8 billion and are soon to surge to $2 billion.

The countries have signed a new agreement under which Iran is to export oil products to Iraq via sea and land.

Iraqi oil output and exports are reported to be the highest in 23 years but the country’s refineries have a long way to go to meet domestic demand

Iran and Iraq have signed a new agreement under which Iran is to build new refineries in Iraq and rehabilitate its oil sector.

Iran is doing its utmost to circumvent sanctions on its oil industry and exports by expanding cooperation away from its traditional European customers.

From a major importer of gasoline, it has turned into an exporter, supplying neighboring states with even airplane fuel.

There is a flurry of refinery construction in Iran in anticipation of a hike in demand of petroleum products particularly from neighboring states such as Turkey, Afghanistan, Pakistan, Turkmenistan and Iraq.

Bilateral trade with these countries is mushrooming and Tehran finds it one of the ways to keep earning hard cash despite U.S. and European sanctions.

Iran is trying to make the best out of  its hydrocarbon wealth as western economic pressure and sanctions on its dealings with the outside world increase.

Iran holds the world’s fourth-largest proven oil reserves and the world’s second-largest natural gas reserves.

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