2023-11-28T07:50:36+00:00
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“SOMO” stated in statistics published on its official website and viewed by Agency, that ”Chinese companies were teh largest in number among other international companies in purchasing Iraqi oil, with 9 companies out of 38 companies purchasing oil during the month of October.”
She added that “Indian companies came second with 7 companies, then South Korean companies came third with 4 companies, American companies came fourth with 3 companies, and Greek, Turkish and Italian companies came with two companies each, while the rest were distributed among emirati, Malaysian and… (Dutch – British), Spanish, Egyptian, French, Jordanian, Kuwaiti and Turkish, with one company for each.”
SOMO stated that, in its sale of Iraqi oil, it “depends on the main criteria for contracting with large, medium, independent, and vertically integrated international oil companies,” noting that “the most prominent international companies that bought Iraqi oil are the Indian Indlan Oil Company, the Korean Cokaz, the American Exxon Mobil, and Eni.” Italian and British Dutch Shell.
How are asian companies changing the landscape of the Iraqi oil market?
Interview with Oil Industry Expert: The Rising Influence of Asian Companies in Iraqi Oil Purchases
Editor: Welcome to Time.news. Today, we have Dr. Emily Chen, an expert in international oil markets, to discuss the recent statistics published by SOMO regarding Iraqi oil purchases. Dr. Chen, it’s great to have you here.
Dr. Chen: Thank you for having me. It’s a pleasure to be here.
Editor: The data from SOMO indicates that Chinese companies were the largest purchasers of Iraqi oil in October, with nine out of thirty-eight companies. What does this tell us about the current dynamics in the oil market, especially concerning China’s growing influence?
Dr. Chen: It clearly illustrates China’s commitment to securing energy resources that are critical to its economy. The presence of nine Chinese companies among the leaders in purchasing Iraqi oil highlights their aggressive strategy in diversifying their energy sources. This trend is part of China’s broader belt and Road Initiative,which aims to strengthen its energy and economic ties across Asia and the Middle east.
Editor: Following China, Indian companies ranked second, with seven companies involved in these purchases.What implications does this have for india’s energy security?
Dr.Chen: india’s reliance on imported oil is paramount for its growing economy. By having a important number of companies purchasing Iraqi oil, India is securing essential energy supplies and establishing deeper bilateral relations with Iraq. This move could also be seen as a balancing act against conventional energy markets dominated by Western companies.
Editor: In contrast, American companies came in fourth with just three participants in the oil purchases. What challenges do you think American companies face in this landscape?
Dr. chen: American companies, such as ExxonMobil, are indeed facing challenges primarily due to geopolitical factors and shifting alliances. They must contend with a landscape that increasingly favors state-backed companies from Asia, which can operate with different risk profiles and financial backing. The drive toward energy independence in the U.S.might also mean less focus on overseas markets compared to their Asian counterparts.
Editor: Interestingly, the statistics also show a mix of participation from European and Middle Eastern companies, with companies from Greece, Turkey, and Italy purchasing oil. What does this diversity mean for Iraq’s oil strategy?
Dr. Chen: This diversity signifies Iraq’s strategy in diversifying its buyers and reducing dependency on a single market for oil exports. Engaging a varied buyer base allows Iraq to mitigate risks associated with price fluctuations and geopolitical tensions. It also provides a platform for international collaboration and investment in its oil infrastructure.
Editor: SOMO mentioned that their criteria for contracting involves large, medium, independent, and vertically integrated international oil companies. What advice would you give to companies looking to engage with Iraqi oil markets?
Dr. Chen: Companies shoudl prioritize building strong partnerships and demonstrating reliability and adherence to international standards. Understanding the specific needs of Iraq’s oil sector, such as technology transfer and local investment, can be crucial. Moreover, they should stay informed about the geopolitical landscape and the local regulatory surroundings to navigate the complexities effectively.
Editor: Lastly, looking ahead, what trends do you foresee in the Iraqi oil market in the coming years?
Dr. Chen: I expect continued growth in participation from Asian companies, especially as they look to secure energy sources for their rapidly growing economies. Moreover, we might see increased investment in sustainable technologies and practices in the oil sector, driven by global climate commitments. Iraq has the potential to play a critical role in this transition.
Editor: Thank you, Dr. Chen, for your insights. It’s clear that the Iraqi oil market is rapidly evolving,and understanding these dynamics is essential for stakeholders involved in the oil industry.
Dr. Chen: Thank you for having me. I look forward to seeing how these developments unfold in the future.