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By John Lee.

Iraq's daily petrol consumption reached approximately 35 million litres on Wednesday, surpassing all previous records, according to the Ministry of Oil's media and government communications office.

The ministry said the shortfall between production and consumption has reached around 4 million litres per day. South Refineries Company (SRC) refineries are operating at full capacity, producing around 30 million litres of petrol per day, but consumption has risen to approximately 34-35 million litres daily.

The ministry attributed the production gap in part to the withdrawal of a foreign company responsible for operating the fluid catalytic cracking (FCC) unit (pictured), citing security concerns. The departure resulted in a loss of 4-5 million litres of high-octane petrol per day. Demand has also been elevated by holidays and religious visits.

Previous peak consumption had not exceeded 32 million litres per day prior to recent regional developments. The ministry said it is managing the shortfall by drawing on available reserves.

(Source: Ministry of Oil)

By John Lee.

Iraq's cabinet has approved a plan to significantly increase crude oil exports, including through a new route via Syrian Mediterranean ports, according to the Ministry of Oil.

The cabinet, chaired by Prime Minister Ali al-Zaidi, endorsed recommendations from a meeting held on 20th May between the prime minister and senior Ministry of Oil officials. The plan includes:

• Increasing pipeline crude exports from 220,000 barrels per day (bpd) to 770,000 bpd, in two phases over two and a half months
• Raising truck exports to neighbouring countries to 420,000 bpd, in three phases
• Granting the oil minister the financial and contractual powers required to implement the plan
• Directing the State Oil Marketing Organization (SOMO) to conclude contracts for the additional volumes
• Resuming operation of fluid catalytic cracking (FCC) units at refineries through the Japanese operating company [UNICO?]

The cabinet also approved a contract with Syria for the transport, storage, and handling of crude oil - including Basra Light, Medium, and Heavy grades - through the ports of Banias and Tartous on the Mediterranean. A representative office of the Ministry of Oil is to be established to manage export operations via this route.

(Source: Ministry of Oil)

By John Lee.

The Ministry of Oil has announced the successful commissioning of the Fluid Catalytic Cracking (FCC) unit at South Refineries Company (SRC), with the start of production of high-octane upgraded petrol.

Deputy Prime Minister for Energy and Minister of Oil Hayan Abdul Ghani Al-Sawad praised the workforce at South Refineries Company for achieving repeated milestones in the refining sector, contributing alongside other companies to national self-sufficiency in petroleum products.

The company's Director General, Hussam Hussein Wali, said final commissioning was completed on the evening of 31 January 2026. He added that the unit will produce around 4,200 cubic metres of high-octane upgraded petrol, further supporting Iraq's drive towards self-sufficiency in refined fuels.

(Source: Ministry of Oil)

By John Lee.

Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul Ghani Al-Sawad has announced that the launch of the Fluid Catalytic Cracking (FCC) project at the South Refineries Company (SRC) in Basra will enable Iraq to achieve self-sufficiency in petrol and other oil derivatives once it is inaugurated on Saturday.

The Minister said that when the current government took office less than three years ago, Iraq was importing petroleum products worth around $5 billion annually. Through the development of domestic refineries and an increase in refining capacity by about 450,000 barrels per day -- nearly double the previous level -- Iraq has now achieved self-sufficiency in diesel and kerosene, while reducing petrol imports from 12,000 cubic metres to 4,000 cubic metres per day. He added that the remaining imports will be replaced by production from the new FCC project, ending the need for imported high-octane petrol.

According to Minister Abdul Ghani, the project will produce high-octane (95+) petrol -- among the best fuel grades available -- representing a major step forward in Iraq's refining capacity and energy self-reliance. He described the achievement as part of the government's wider effort to deliver tangible benefits and essential services to the Iraqi people.

(Source: Ministry of Oil)

By John Lee.

Iraq's National Investment Commission (NIC), in cooperation with the United Nations Development Programme (UNDP), has held a workshop to discuss the first phase of Iraq's National Climate Investment Plan (CIP) for 2025-2030, which was launched in July.

The meeting in Baghdad was attended by international organisations, diplomatic missions, the Ministry of Environment, and local and foreign investors.

NIC Chairman Haider Mohammed Makiya said the CIP is a government-backed roadmap to address the challenges of climate change, already impacting Iraq's water, agriculture, and environment. He noted that the first phase will focus on five tracks - energy and renewables, agriculture, industry, water, and innovation.

The plan will be financed through the Green Climate Fund (GCF), with an estimated range of $1.3-3.3 billion, and by the International Finance Corporation (IFC). According to Makiya, Iraq attracted more than $102 billion in investments (foreign $64 billion, domestic $36.8 billion) over the past two and a half years.

A second phase (2031-2050) will expand the focus to climate-related projects in industry, agriculture, transport, and energy.

During the event, UNDP's Mamnoor Rashid highlighted Iraq's international commitments, including the Montreal Protocol, the UN Framework Convention on Climate Change (UNFCCC), and pledges to end routine flaring by 2030.

The workshop concluded with recommendations to intensify cooperation with domestic and international partners and to finalise mechanisms for financing and implementation across all provinces.

Click here to download the full plan [English]

Click here to download the full plan [Arabic]

To browse our comprehensive library of reports on Iraq, click here.

(Source: NIC)

By John Lee.

Iraq's Deputy Prime Minister for Energy Affairs and Minister of Oil, Eng. Hayan Abdul Ghani, has visited the Hydrogenation and Gasoline Improvement Project in Kirkuk, currently being implemented by Al-Barham Company for Refining and Distribution of Petroleum Products for the North Refineries Company (NRC).

The Minister reaffirmed the government's commitment to upgrading petroleum product quality to international standards, citing the Kirkuk project as one of several strategic initiatives in Iraq's refining sector.

Other key projects include the FCC unit at South Refineries Company to boost high-octane gasoline production, as well as the addition of production units at Missan, Najaf, Diwaniya, and Nineveh refineries, each with a capacity of 70,000 barrels per day, designed to meet modern environmental and efficiency standards.

The Kirkuk-based project comprises three main units:

• A benzene hydrogenation unit (14,400 bpd)
• A gasoline improvement unit (6,400 bpd)
• An isomerisation unit (8,000 bpd)

The Ministry emphasised the project's strategic role in modernising Iraq's refining capabilities and reducing dependency on fuel imports.

(Source: Ministry of Oil)

By John Lee.

Iraq's Federal Supreme Court (FSC) has announced the retirement of its President, Judge Jassim Mohammed Aboud [al-Umairi], due to health reasons.

The decision was made on Sunday, 29th June 2025, during a meeting of the committee established under Article 3 (First and Second) of the amended Law No. 30 of 2005 on the Federal Supreme Court.

Judge Munthir Ibrahim Hussein, currently Deputy President of the Federal Court of Cassation (FCC) and Head of its Criminal Panel, has been nominated to succeed him. A formal request has been submitted to the President of the Republic for issuance of the republican decree of appointment.

Born in Baghdad in 1963, Judge Hussein holds a law degree from the University of Baghdad (1989) and graduated from the Judicial Institute in 1998 (21st cohort). He has served at the Court of Cassation since 2018 and is also an alternate member of the Federal Supreme Court.

Several members of Iraq's Federal Supreme Court are reported to have submitted their resignations recently in protest against the court's former chief justice.

(Source: Supreme Judicial Council)

By John Lee.

Qi (International Smart Card), Iraq's largest electronic payment platform, has announced that it has entered into a landmark partnership with K2 Integrity (K2i), a US-based global financial integrity and compliance advisory firm.

The multi-year collaboration aims to align Iraq's financial infrastructure with international standards in anti-money laundering (AML) and countering the financing of terrorism (CFT).

The partnership spans operations in the UAE, Jordan, and Iraq. A major compliance back office will be established in Jordan, fully integrated into Qi's ecosystem, while the UAE office will serve as an innovation hub.

ISC Chairman Bahaa Abdul Hadi described the initiative as part of a broader national mission:

"This is not just about one business group. This is about Iraq and its economic future ... we are investing heavily to ensure our systems, people, and partners meet the highest global standards of financial integrity."

The partnership spans a 36-month roadmap split into three phases, where K2 Integrity will perform the following strategic tasks.

• Evaluate and transform Qi's current financial crime compliance (FCC) framework.
• Train Qi's personnel across all levels-from frontline staff to executive leadership.
• Take operational responsibility for implementing globally benchmarked compliance practices.
• Transition the program into a sustainable, best-in-class model eventually managed by Qi.

According to a press release, this initiative marks a pivotal milestone in Iraq's compliance evolution, strengthening national capabilities and building a foundation for secure, scalable financial growth; it positions Iraq to regain credibility with international partners, attract investment, and enable more secure, scalable cross-border transactions, particularly vital for trade, remittances, and financial inclusion.

(Source: Qi)

By John Lee.

The Kurdistan Regional Government (KRG) and Iraq's federal government have entered into a new dispute over the legitimacy of two major energy agreements signed with American companies.

On 19th May, Kurdistan's Prime Minister Masrour Barzani oversaw the signing of two agreements at the U.S. Chamber of Commerce in Washington, D.C., which the KRG claims represent "tens of billions of US dollars" in value. The deals were concluded between the KRG's Ministry of Natural Resources and American energy firms HKN Energy and WesternZagros.

HKN Energy, in partnership with ONEX Group, announced the formation of a joint venture called Miran Energy to develop the Miran gas field. According to their statement, the field could hold an estimated 8 trillion standard cubic feet of recoverable natural gas and potentially generate over $40 billion in long-term value.

In a separate agreement, WesternZagros secured rights to the Topkhana block, which, combined with their existing Kurdamir block, reportedly holds a resource potential of up to 5 trillion standard cubic feet of natural gas and 900 million barrels of crude oil. WesternZagros estimates the phased development could generate approximately $70 billion in revenue over the project's lifetime.

The agreements quickly drew condemnation from Baghdad. In a statement released on 20th May, Iraq's Federal Ministry of Oil rejected the KRG's actions, describing them as violations of decisions issued by the Federal Court of Cassation (FCC). The ministry cited a specific ruling in case number 59/Federal 2012 (and its consolidated case 110/Federal 2019), which it claims renders contracts concluded after the court's decision "illegitimate."

"Oil wealth is considered the property of all Iraqi people, and any measures for its investment must be conducted through the federal government," the ministry stated, declaring the contracts "null" based on the Iraqi Constitution and Federal Court decisions.

The KRG, however, defended the agreements, stating they are "based on existing contracts with new US investment and new operating companies." In its response issued on 20th May, the KRG's Ministry of Natural Resources claimed that the contracts in question were "signed many years ago" and have been "upheld as legal and valid by Iraqi courts."

The KRG emphasised that both American companies have operated in the Kurdistan Region for years and are already among the region's primary oil producers. It further stated that the agreements aim to increase domestic natural gas production to meet power generation needs and deliver "uninterrupted electricity services across all parts of Iraq."

This dispute represents the latest chapter in the long-standing tensions between Erbil and Baghdad over control of the Kurdistan Region's natural resources, particularly as the KRG continues to assert what it describes as its "constitutional rights and authorities as a federal entity under the permanent Constitution of Iraq."

Statement from the federal Ministry of Oil in Baghdad (translated):

Clarification from the Ministry of Oil

Some news outlets have circulated reports from the Kurdistan Regional Government (KRG) concerning "new energy agreements valued at tens of billions of dollars."

The Federal Ministry of Oil wishes to clarify its rejection of the procedures undertaken by the Ministry of Natural Resources in the Kurdistan Regional Government for the investment of the Miran field and the Topkhana-Kurdamir field in Sulaymaniyah Governorate. These procedures violate decisions issued by the Federal Court of Cassation, which deemed contracts concluded after the issuance of the Federal Supreme Court's decision in case number 59 / Federal 2012 (and its consolidated case 110 / Federal 2019) as illegitimate.

The Ministry emphasises that despite Iraq's need to maximize gas investment and meet domestic demand for operating power generation plants across the country, the KRG's actions explicitly contravene Iraqi law. Oil wealth is considered the property of all Iraqi people, and any measures for its investment must be conducted through the federal government.

Accordingly, the Ministry affirms the nullity of these contracts based on the Iraqi Constitution and the decisions of the Federal Court.

Statement from the Kurdistan Regional Government (KRG):

Clarification from the Ministry of Natural Resources

While the Kurdistan Regional Government continues to emphasize all its constitutional rights and authorities as a federal entity under the permanent Constitution of Iraq, which clearly recognizes the Region's rights and authorities, we reaffirm that the two deals signed by our Ministry with the American companies HKN and WesternZagros are based on existing contracts with new US investment and new operating companies.

These deals are based on contracts signed many years ago, which have also been upheld as legal and valid by Iraqi courts. There is no legal dispute concerning them. The recent change has been in the operating companies, in accordance with the legal and contractual framework of the existing agreements.

Both American companies have been active in the Kurdistan Region for many years and are among the Region's primary oil producers. They are not new investors.

The aim of these agreements is to increase domestic natural gas production to meet the fuel needs of power generation stations, with the goal of delivering uninterrupted electricity services across all parts of Iraq.

By John Lee.

Iraq's South Refineries Company (SRC) is nearing the completion of its Fluid Catalytic Cracking (FCC) project, with 98% of the work done. Deputy Prime Minister and Minister of Oil, Hayan Abdul Ghani, emphasized the importance of boosting production to achieve self-sufficiency in petroleum products during his visit to the site.

The project, set to start phased operations in August and full production in September, will have a capacity of 55,000 barrels per day, producing 4,300 cubic meters of Euro 5-compliant gasoline, 300 tons of liquefied gas, 6,000 cubic meters of hydrotreated gas oil, 4,500 tons of improved fuel oil, and 400 tons of solid sulfur per day.

(Source: Ministry of Oil)