Iraqi Energy Policy: Interview with Dr. Ibrahim Bahr Alolom

Natural Gas Asia was recently pleased to have the opportunity to speak with Dr. Ibrahim Bahr Alolom, the former Iraqi Minister of Oil and the founder of the Iraq Energy Academy. A member of National Iraqi Assembly, Dr. Bahr Alolom was appointed as Minister of Oil in Iraq for two terms, in 2003 under the Iraqi Governing Council (IGC), and in 2005 under the first elected government in Iraq.

What are Iraq’s main foreign policy objectives, priorities, and challenges in regard to its neighbors and neighborhood?

The main objectives of Iraq's foreign policy is to achieve an exceptional and balanced relationship with its neighboring countries based on common understandings and interests, also based on non-interference in each other's internal affairs. Of course there are major challenges to achieve these goals; one is the "Arab spring" incidents and its consequences which led to the formation of new regional alliances and divisions. 

Iraq is still an emerging new democratic country, and still in the process of building its political system. Iraq needs to maintain its distance from the influence of external players and follow a quite clear vision for  foreign strategy to ensure its achievements at the political, economic and foreign policy levels already attained remains intact 

Is Iraq’s foreign policy a driving force for its energy policy or is its energy policy a driving force for its foreign policy? How so?

It is hard to say which one is the driving force of the other, it is an integrated relationship. Without a successful foreign policy towards our neighboring countries in which we identify mutual interests we cannot go forward with our energy policy. The opposite is true, a foreign policy won't be considered successful if our energy policy isn't identified as its core aspiration.

What are the driving forces of Baghdad’s relationship with Ankara? What is the role of energy in this relationship?

The key factors that drive Baghdad to establish good relations with Ankara are political, economic, and energy factors.

Politically, Turkey affects the Iraqi Kurdish situation; it also has influence in Mosul and Kirkuk, which are politically and socially fragile areas. So any improvement in the political relations between Iraq and Turkey will be reflected on the stability of the mentioned areas, which is crucial for the stability of Iraq and its internal indulgent.

Economically, the Turkish - Iraqi trade balance constitutes more than $10 billion annually and Iraq represents a marketplace for Turkish products and a promising investment and business market for their companies.

In terms of oil, the Turkish ports are the only oil export outlet for Iraq across the Mediterranean.

Moreover, Turkey has important impact on Iraq water policy. Energy plays major role and has great influence in the Iraqi Turkish relations. Water constitutes a major element for the Turkish energy security policy, it invests the utmost benefit of its water resources to enhance its food security, but it relies mainly on imported oil, gas and coal. While on the other side Iraq suffers from water scarcity that threatens its food security but it's one of the major oil and gas exporting countries which plays a major role in the stability of the market as well as to be a main energy supplier to its neighbor.

Do you think Iraq will pursue the option of becoming a supplier for the Southern Energy Corridor? Could Iraq become a natural gas supplier for Turkey? Could Iraq develop a joint proposal with Turkey for the Southern Energy Corridor?

It depends heavily on the Turkish strategy towards Iraq. If Iraq is reassured of Turkey's approach to keep the unity of Iraq and support its political process, then it’s a priority for Iraq to consider becoming Turkey's main supplier of oil and gas. The two countries need to establish a common vision which contributes to securing their energy resources, as they both face a shortage of energy.

The theory of "Integration of energy" between both countries should be the perspective of their future political ties; this will contribute to the political stability and push Iraq to take advantage of its natural resources to strengthen its external relations. However, in the last months, Turkish foreign policy based on “zero problem with neighbors” principle was not helpful in achieving these goals. 

What are the measures being taken by Baghdad to protect Iraq’s energy market from potential impacts of the Syrian crisis?

Iraq is seeking to diversify its oil export ports, to minimize its dependence on the Strait of Hormuz. There is a project for the establishment of the oil pipeline through Aqaba and expand the capacity of the Turkish pipeline, and seeking to restore the pipeline across Saudi Arabia. I do not think that the deterioration of the Syrian situation will have a direct impact on the Iraqi energy market. Yes, it may delay Iraq's plan to set up export pipeline through Syria, or delay the Iranian project to transport its gas across Iraqi territory.

How important is it for Baghdad to have US and EU support for its energy agreements? 

According to the report released by the International Energy Agency in October 2012, it stated that Iraq will be able to meet 45% of global oil demand in the next ten years and Iraq will be a source of gas at the end of the decade, hence the world's oil investment companies benefit is linked to the development of the Iraqi energy sector, which will have excess energy capacity contributing to the stability of the market when needed as well as securing oil supplies. The reconstruction projects in Iraq will constitutes approximately $500 billion over the coming years and it is in the interests of the United States and Europe to support Iraq as an emerging economic power within a stabilized democratic system.  

This interview was prompted by Olgu Okumus’ participation at the Hollings Center's dialogue on "Iraq's Foreign Policy and Economic Challenges" where these and other issues were discussed. To read the report: www.hollingscenter.org. Olgu Okumus is completing her PhD on “The Role of Turkey in EU Energy Security” at Sciences Po-CERI in Paris. She is also an affiliated lecturer in energy diplomacy at Collège Universitaire de Sciences Po, Paris.  She can be contacted at (olgu.okumus@sciences-po.org)