SEATTLE (Oil Monster): Iraq is preparing to gradually restore its crude oil production to pre-crisis levels, according to a statement issued Sunday by the country’s Deputy Oil Minister for Upstream Affairs.
The country targets an output in the range of between 4.2 million and 4.3 million barrels per day (bpd). The planned increase will help the country to return to production levels recorded prior to U.S.- Iran conflicts and the subsequent closure of the Strait of Hormuz.
The disruption caused by the U.S.-Iran war had a significant impact on Iraq’s oil sector. The country has been among the worst-affected Middle Eastern exporting nations. Iraq typically exports around 3.6 million bpd of crude oil. However, data suggest that the country’s seaborne crude and condensate exports fell to as low as 260kbd in May this year.
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Before the conflict, Iraq relied heavily on the Gulf port of Khor al-Zubair for fuel oil exports. However, the closure of the Strait of Hormuz forced the country to seek alternative export routes.
Oil Ministry spokesperson Saleem al-Rikabi stated that there is no fixed timeline for restoring exports to previous levels. The fields producing associated gas, liquefied gas, and condensates will be given priority. Export capacity and tanker operations are expected to recover alongside production, he said.
According to Iraqi oil officials, crude oil production from southern fields has already increased by 250,000 bpd to about 1.75 million bpd.
