Restoring output from Iraq’s southern oil fields to pre-war levels of up to 4.3 million barrels per day (bpd) and increasing crude exports are among the Oil Ministry’s main priorities, newly appointed Deputy Oil Minister for Extraction Affairs Nasser Aziz said on Sunday.
In a statement, Aziz clarified that the ministry is implementing plans to rehabilitate southern fields whose output declined during the US-Israeli war on Iran and the closure of the Strait of Hormuz, which carries around 20% of global oil supplies. Oil companies have been instructed to reassess operating conditions, accelerate pumping operations, and address bottlenecks to secure domestic supplies and increase shipments through southern terminals.
The ministry, he noted, aims to gradually raise output to between 4.2 million and 4.3 million barrels per day and increase exports to around 3.5 million barrels per day, relying on Iraqi expertise and international energy companies to achieve the targets despite technical and logistical challenges.
Aziz’s priorities also include strengthening flows through the Kirkuk-Ceyhan pipeline, expanding alternative export routes, advancing projects at the Midland and North oil companies, and accelerating the development of exploration blocks alongside associated and free gas projects. He pledged to provide a supportive investment environment and deepen cooperation with energy companies operating in Iraq.
Eco Iraq, an economic affairs observatory, had estimated that the country has lost around 350 million barrels of exports since the closure of the Strait of Hormuz, through which the country ships about 95% of its crude, equivalent to approximately $37.7 billion in lost revenue. Before the closure on Feb. 28, Iraq exported between 103 million and 107 million barrels of crude each month, with losses reaching 84.4 million barrels in March, 93.1 million in April, and 92.8 million in May, while June has so far recorded a decline of about 79.6 million barrels.
