Iraq seeks alternative routes as oil exports plunge amid Strait of Hormuz closure

Iraq's crude oil exports have plummeted from a pre-escalation average of 3.4 million barrels per day to a range of 1.5 to 1.7 million barrels per day as the Strait of Hormuz remains closed. Oil Minister Basim Khudair revealed that the nation's current crude oil output stands at approximately 2.7 million barrels per day, while exports have fallen to the aforementioned range.

The drop in exports prompted the government to seek alternative routes and diversify its crude oil export channels. Khudair highlighted two projects under consideration: the export of oil through the Port of Aqaba and the Basra-Fishkhabur pipeline project, both slated for implementation under a build-operate-transfer (BOT) framework.

He affirmed that Iraq's oil fields possess the capacity to regain previous production and export levels, and the country remains committed to advancing oil infrastructure, diversifying export routes, and boosting gas investments. Despite the challenges posed by the Strait of Hormuz, Iraq has managed to maintain domestic oil supplies.

Khudair emphasized that the government is striving to create a secure and stable environment for investments in the oil sector. The Ministry of Oil is pursuing two concurrent tracks in the gas sector: halting the flaring of associated gas and developing gas fields. To this end, 14 contracts have been awarded to international companies for project implementation.

Iraq's diversification efforts aim to diminish its reliance on the Strait of Hormuz and bolster the resilience of its oil sector against potential disruptions. The Aqaba export route and Basra-Fishkhabur pipeline are anticipated to offer supplementary pathways for transporting crude to global markets and support Iraq's objectives of restoring export volumes once conditions improve.