Iraq’s crude oil production currently stands at 2.75 million barrels per day (bpd), while crude exports this month have fallen to 1.75 million bpd, Oil Minister Basim Mohammed Khudair Al-Abadi said on Saturday.
Khudair said at a press conference that Iraq had exported about 3.4 million bpd through the Strait of Hormuz before the war, but shipments through the waterway had declined since the conflict began.
He said Iraq needed to find long-term solutions to diversify its oil export routes.
That means Iraqi crude exports have fallen by about 1.65 million bpd this month from their pre-war level.
Iraq is now working to gradually increase crude exports through Türkiye’s Ceyhan port to 750,000 bpd from fields in Kirkuk and the Kurdistan region, Khudair said. Crude from fields in Basra is also being transported by tankers, in addition to volumes moved north from southern Iraq through the strategic pipeline.
Khudair said Iraq had agreed with a consortium led by US energy major Chevron to build a pipeline carrying crude from Basra to Iraq’s far north, with a capacity of 2 million bpd and an estimated cost of $15 billion.
He said the consortium, which includes Chevron and Qatar’s USS, would build the new pipeline alongside the existing strategic pipeline, linking Iraqi oil exports to Syria’s Baniyas and Jordan’s Aqaba.
The Basra-Fishkhabour pipeline would be developed under a build-operate-transfer (BOT) model, with a company building and operating the pipeline under an investment arrangement, he said.
Khudair said Iraq’s current oil export capacity could not handle the volumes shipped before the war, but exports could return to previous levels once the conflict ended.
“All oil fields are ready to restore exports to their previous levels,” he said, adding that the government was working to provide a secure environment for companies.
On Iraq’s oil agreement with Türkiye, Khudair said the deal had been renewed after previously containing certain conditions. Türkiye had proposed limiting the arrangement to oil transport and involving Iraq in certain projects, he said.
He added that the planned volume of 700,000 bpd could not be supplied through Kirkuk alone.
The Oil Ministry is seeking to develop Iraq’s export infrastructure, Khudair said, adding that a recent visit to the United States marked a new phase of cooperation with international companies.
He said the presence of US companies in Iraq reflected the attractiveness of the country’s investment environment.
International companies could train Iraqi personnel, help provide infrastructure and create large numbers of jobs, he said.
Khudair said the ministry had signed memorandums of understanding and contracts covering seven items, including two contracts related to development and investment in oil and associated gas.
An annex to an agreement covering Qurna-2, the Nasiriyah project and four blocks was also signed, he said.
Three memorandums of understanding were signed with US companies and could bring significant investment capacity, Khudair said, adding that another step concerned the oil export project through Aqaba.
Turning to oil and gas in the Kurdistan region, Khudair said there was a tripartite agreement between the federal government, the regional government, and oil companies that could be amended through negotiations.
He said the ministry did not distinguish between citizens in Kurdistan and those in any other Iraqi province.
The Kurdistan oil issue required considerable dialogue, he said, stressing the importance of continued negotiations to reach solutions serving the national interest.
Khudair also said one of the ministry’s objectives was to establish oil storage facilities in some countries, adding that talks and work on the plan were continuing.
He later put Iraq’s current oil production at 2.7 million bpd and exports at 1.5-1.7 million bpd.
The minister said the Oil Ministry was moving ahead with the government’s program to put Iraq at the forefront of energy production, while the government had a plan to end gas flaring.
Speaking at the press conference, according to the Iraqi News Agency, Khudair said the ministry had managed to secure petroleum products for citizens despite challenges and problems related to the strait.
He said the ministry was working around the clock in line with the prime minister’s directives.
Khudair said the ministry was seeking to develop the oil industry, increase production and exports, build infrastructure, expand investment, and attract international companies to develop Iraq’s oil and gas resources.
Iraq needed to build modern infrastructure after “50 lean years” marked by wars and terrorism, he said.