Iraq.. Efforts to return to oil production at pre-war levels | economy

The Iraqi Ministry of Oil decided to restore crude oil production operations in 5 major fields in Basra Governorate in southern Iraq, while crude production from the southern fields is likely to return to pre-war levels “within one to two months.”

The Operations Authority of the Iraqi Ministry of Oil stated, in a statement published today, Saturday, that it was decided to “restore production and pumping operations to storage tanks with maximum production capacity in the Rumaila, Zubair, West Qurna I and II, and Artawi fields.”

The authority called for the return of normal production capacity in these fields starting last night, according to what was reported by the German News Agency.

Meanwhile, Oil Ministry spokesman Salim Farhoud told the Iraqi News Agency on Friday evening, “It is possible that within one to two months we will return to previous production levels, which exceed 3 million barrels per day from the southern fields.”

Farhoud pointed out that “the fields whose production capacities were reduced have now begun to increase those capacities.”

Iraq’s oil production declined sharply following the closure of the Strait of Hormuz during the US-Iranian war, before a memorandum of understanding was reached on stopping it last Thursday.

Iraq was forced to declare “force majeure” and stop crude oil production operations after the outbreak of the US-Iranian war on February 28, when production rates were reduced to the level of 1.5 million barrels per day out of the level of crude oil production in Iraq of 4.3 million barrels per day.

As for oil exports, the Iraqi Oil Minister, Bassem Muhammad Khudair, told the Iraqi News Agency, “Their return will be gradual, based on the smoothness of their passage through the Strait of Hormuz.”

Before the war, Iraq, a founding member of OPEC, exported an average of 3.5 million barrels of oil per day, most of it through the Strait of Hormuz.

Oil exploration in the north

In the same context, I started The Iraqi Ministry of Oil has drilled the first exploratory well in the northern governorates since 1978, according to a ministry statement.

Iraqi Oil Minister Bassem Muhammad Khudair confirmed that drilling this well represents an important milestone in the ministry’s efforts to reactivate exploratory work in promising areas after long years of cessation.

The minister said, “Increasing the proven reserves of oil and gas and compensating for the depleted represents a strategic goal for the Ministry of Oil, because of its role in enhancing Iraq’s oil position globally and supporting plans to develop the oil sector in the long term.”

Iraq depends largely on foreign currencies resulting from oil sales, to finance imports, stabilize the dinar, and pay the salaries of public sector employees and retirees, meaning about 20% of the population of more than 46 million.