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

Iraq Prime Minister Ali al-Zaidi has announced his government's ambition to boost the country's oil exports to up to 10 million barrels per day within the next six years, according to a recent statement in Baghdad. Crude oil sales currently make up nearly 90% of Iraq's revenue, but the nation's exports have suffered significantly due to the ongoing conflict between Iran and the US, which has disrupted the Strait of Hormuz.

The prime minister emphasized that Iraq, as an OPEC founding member, is committed to increasing its export share within the OPEC+ framework and aims to reach between 8 to 10 million barrels per day over the next six years. Prior to the war, Iraq was producing around four million barrels daily and exporting an average of 105 million barrels monthly, primarily from its Basra oil terminal via Hormuz.

The closure of the Strait of Hormuz has posed a major challenge for Iraq's oil exports, forcing the country to diversify its export routes. Iraq has begun exporting crude through tanker trucks from Syria, as well as via a pipeline to Turkey's Ceyhan port. Additionally, efforts are underway to expand exports to Baniyas in Syria and Aqaba in Jordan.

Despite a slight recovery in Iraqi oil exports to approximately 49 million barrels in July, with over 30 million barrels passing through the Strait of Hormuz, the country's exports have yet to reach pre-war levels. However, in the first two weeks of August, Iraq achieved an average of two million barrels per day, marking the highest level since the Middle East war began.

While Iraq heavily relies on foreign currency earnings from oil sales, the government is actively seeking to diversify the nation's economy to mitigate the impact of fluctuating oil prices and geopolitical tensions.