Iraq says oil output ready to return to pre-conflict levels

Iraq is preparing to restore crude oil production and exports to pre-conflict levels, as the government moves to stabilise the energy sector following disruptions linked to tensions in the Persian Gulf.

Oil Minister Bassem Mohammed Khudair said all oil fields are operationally ready to ramp up output.

“All oil fields are ready to resume production and export at previous levels,” he said, adding that the government “is working to ensure a safe environment for companies in the extractive sector.”

Khudair stressed that Baghdad “rejects any attacks on oil companies, and the Iraqi authorities have agreed to pay compensation in case they suffer damage,” underlining efforts to reassure international operators.

Before the conflict in the Gulf region, Iraq exported approximately 3.4 million barrels per day via the Strait of Hormuz, he said, though volumes along that route have since declined.

“Before the war [in the Persian Gulf region], Iraq exported about 3.4 million barrels of oil per day through the Strait of Hormuz, but currently export volumes via this route have decreased,” Khudair said.

He added that Iraq must “find solutions to diversify export routes” to mitigate risks tied to the chokepoint. Baghdad has held discussions with Iran regarding the possibility of facilitating Iraqi oil exports via Hormuz, but “so far this dialogue is inactive,” he said.

Khudair also noted that “one of the goals of Iraq’s oil ministry” is to establish storage facilities abroad, with consultations ongoing, though he did not specify potential host countries.

According to the minister, Iraq currently produces around 2.7 million barrels of oil per day and exports between 1.5 million and 1.7 million barrels daily.

By Tamilla Hasanova