Iraq PM seeks oil export rise to 10mil barrels a day

Iraq's Prime Minister Ali al-Zaidi has revealed plans to boost the nation's oil exports to a potential 10 million barrels per day within six years. Crude oil sales constitute nearly 90% of Iraq's revenue, but this sector has faced challenges due to the Iran-US conflict which has restricted access through the Strait of Hormuz. As an OPEC founding member, Iraq was compelled to suspend production in many of its oil fields during the war due to reservoir overflows.

Al-Zaidi informed a Baghdad panel that his government is striving to enhance Iraq's export share within the OPEC+ framework. His goal is to achieve exports of 8 to 10 million barrels per day within the next six years. Before the war, Iraq produced about four million barrels daily and exported approximately 105 million barrels monthly, primarily from its Basra oil terminal via Hormuz.

The Strait of Hormuz closure presents a significant hurdle for Iraq. In response, the Prime Minister stated that Baghdad is actively working to increase exports via alternative routes such as Ceyhan in Turkey, Baniyas in Syria, and Aqaba in Jordan. Prior to the crisis, Iraqi oil exports dwindled following the Hormuz strait closure, but they have shown a slight recovery to around 49 million barrels in July, with more than 30 million barrels passing through the strait.

In the first two weeks of August, Iraq recorded an average of two million barrels daily, marking its highest export level since the start of the Middle East conflict. Despite relying heavily on oil earnings for foreign currency, Iraqi authorities are also focused on diversifying the country's economy.