Iran Wary of Iraqi Oil Export Plans

By Ayser Jabbar for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Iraq’s aspirations to increase its oil exports to close to 7 million barrels per day by 2017 drew criticism from the Iranian Ministry of Petroleum. Iranian Petroleum Minister Bijan Namdar Zangeneh regarded the move, which seeks to make up for the lack of oil exports from his country as a result of sanctions, as “absolutely unfriendly.”

The Iranian Embassy in Baghdad concurred with the opinion of the petroleum minister.

“Iraq’s oil policies will be harmful to the interests of Iran, especially given its aspirations to increase its crude oil exports to compete on the market and to establish a place for itself on the international scene,” Iranian Deputy Ambassador to Iraq Aziz Salihi explained to Al-Monitor. “Iran’s oil exports have gone down due to sanctions from 2.5 million barrels to 1.2 million barrels per day.”

“Iran enjoys good and solid relations with Iraq, and we do not anticipate for this to be compromised because of oil policies,” he continued, pointing out, “We can hold a dialogue with concerned Iraqi parties to establish some sort of understanding in this regard.”

Amid this criticism and fear of increased Iraqi oil exports, the Iranian nuclear deal with the major Western powers has emerged as a promising step toward a powerful economic revival that will be witnessed by the Gulf. It will also spark competition between oil-producing countries in a way that may lead to disputes over shares, granting facilitations and preferences to consuming countries, especially in East Asian countries.

Oil expert Hazem al-Fartousi explained to Al-Monitor that the results of the agreement will have two trajectories. One will be toward quelling the markets from the geopolitical conditions related to the Iranian nuclear file, including the instability in prices it caused. The other will have to do with the return of Iranian [oil] exports, thus increasing the amount of oil available on the market in a way that would bring relative oil stability in Iran. This will also decrease Iranian fears of increased oil exports from Iraq that Tehran spoke of not long ago.

2 Responses to Iran Wary of Iraqi Oil Export Plans

  1. Uruki-the-Iraqi December 10, 2013 at 11:59 pm #

    We, “the Iraqis” only have few words to these Iranian minions and their other idiots (Iran’s oil minister “Zangeneh” and Iranian Deputy Ambassador to Iraq “Aziz Salihi”)
    First of all, why are these ultra nationalist (Shah of Iran’s era) Iranians only picking on IRAQ? Why don’t you go after other countries around the world (who are currently producing oil) and tell them they are harming Iran as well by producing oil at high levels (so harmless to Iran) such as Russia (10.9 million barrels of crude per day), Saudi Arabia (9.9), USA (8.4), China (4), Canada (3.6) and others like Venezuela (3), Brazil (2.6) and Nigeria (2.5)?? Maybe these two misinformed Iranian stooges have short memory and we need to remind them and EVERYONE’s else how Iran benefited after the USA and other western powers put devastating sanctions on Iraq for well over 12 years while Iran reached oil production levels of (4 million barrels of crude per day) and profited immensely on behalf of the misery of millions of Iraqis for decades since 1991!!
    Second, Iraq did not put these sanctions on Iran, the US did, so the IRI have no right to punish Iraq or dictate Iraq’s oil (or Iraq’s other energy) policies and blame anything on Iraq (Iraq is justly and only looking after Iraq’s people and its own god given rights and interests)…
    Third, if it was for the Iraqis, we would definitely and positively pass laws in the Iraqi parliament to boycott all Iranian products (from low grade cement to all sorts of other bad quality products) from entering Iraq and stop, prevent and block awarding lucrative projects to 2-bit Iranian companies which, BTW, are the nastiest companies representing the worst kind of business models around the world!!
    And one final note regarding Iraq’s future oil production levels… Maybe Iraq will try to reach (7 million barrels of crude per day) by 2017 (and that is a big IF) but Iraq will abide by OPEC exporting quotas allocated for Iraq currently set at (4.5 million barrels of crude per day) while the remaining and extra (2.5~3) will be needed inside Iraq for domestic consumption (for the next 20 years to come) to rebuild Iraq and reconstruct a country that see nothing but wars and destructions (under dictatorship rule) for the past 30 years and Iraq needs the help and support of ALL civilized countries and friendly nations to reach that decent and peaceful goal (unlike the Iranians who are clearly showing jealousy and espousing hatred by making ignorant statements such as the ones made above by these TWO STUPID Iranians we read in this article!!