Iraq oil exports plunge on Strait of Hormuz closure

Iraq's oil exports have plummeted from 3.4 million barrels per day to 1.5 to 1.7 million barrels per day following the closure of the Strait of Hormuz. The Ministry of Oil's Basim Khudair revealed that Iraq's current crude oil production is approximately 2.7 million barrels per day, while exports range between the aforementioned figures.

The decline in exports is attributed to the reduced passage through the Strait of Hormuz, prompting the government to seek alternative routes and diversify its crude oil export routes. This includes projects like the Port of Aqaba and the Basra-Fishkhabur pipeline, set to be implemented under a build-operate-transfer (BOT) system.

Khudair affirmed Iraq's oil fields can restore previous production and export levels, emphasizing the country's commitment to advancing oil infrastructure, diversifying export routes, and enhancing gas investment. Despite the challenges posed by the Strait of Hormuz, Iraq has managed to secure oil supplies for its domestic market.

The government is working on two parallel tracks in the gas sector: ending the flaring of associated gas and developing gas fields, with 14 contracts having been awarded to international companies for implementation.