Iraq sets ambitious target to more than double oil production by 2032

Iraqi Prime Minister Ali Al Zaidi has set an ambitious goal for Iraq's oil production, aiming to more than double the country's current output to seven million barrels per day by 2030, and a further 10 million barrels per day by 2032. This target includes an additional one million barrels per day from the Kurdistan region. Iraqi oil exports reached approximately 3.4 million barrels per day in October.

During a meeting with Kurdistan Region Prime Minister Masrour Barzani in Baghdad, Al Zaidi emphasized that this production increase would have a positive impact on the country's development and economy. Iraq has been advocating for higher production levels by Opec countries, as economic challenges stemming from the Iran war and diminished oil revenues due to global disruptions have put pressure on Baghdad to boost output.

The conflict has severely affected Iraq, forcing significant export reductions and depriving the state of oil revenue, which typically accounts for around 90% of government income. Oil Minister Basim Mohammed Khudair confirmed that Iraq is in discussions with Opec to raise export quotas, taking into account Iraq's unique circumstances over the past five decades. He stated that Iraq deserves a production rate increase to generate revenue for infrastructure and government initiatives.

Opec has allocated Iraq a production quota of 4.431 million barrels per day. Prior to the Iran war, Iraq produced around 4.4 million barrels per day. Production and exports declined sharply following disruptions in the Strait of Hormuz, plummeting from 3.36 million barrels per day in February to a mere 131,000 barrels per day in April. This led to a sharp decline in monthly oil revenue, which had previously averaged around $7 billion. However, Iraqi oil exports recovered in October.

To support the new production target, the Iraqi government has been working to finalize oil and gas deals valued at billions of dollars, primarily with US companies such as Chevron, HKN Energy, and Halliburton. Additionally, Iraq is exploring alternative export routes to reduce its dependence on the Strait of Hormuz. These efforts include constructing pipelines to Syria's Baniyas port on the Mediterranean, Jordan's Aqaba port, and the Iraq-Turkey pipeline to Ceyhan.