Iraq plans to raise oil production to more than 10 million barrels per day by 2030
Oil exports from the Kurdistan Region have increased to around 180,000 barrels per day, while tens of thousands of barrels of Kirkuk crude are also being exported through the Kurdistan Region’s pipeline network.
According to the latest statement by Iraq’s Minister of Oil, the country’s oil exports exceeded two million barrels per day in August. Export volumes are expected to reach 2.5 million barrels per day by the end of September, bringing exports closer to the levels recorded before the disruption caused by the closure of the Strait of Hormuz.
Oil production companies that had previously left the Kurdistan Region due to security concerns have recently returned and resumed operations. Their return has gradually increased production and exports from the region, which have now reached approximately 180,000 barrels per day.
Iraq’s daily oil exports reached around 2.25 million barrels in August, contributing to an improvement in the country’s financial position in recent months. If the current trend continues, exports could increase further.
Higher oil production and exports from the Kurdistan Region would benefit Iraq’s federal revenues and could help reduce the budgetary pressures that have affected the country in recent months.
The Iraqi government faces significant financial pressure and has reportedly drawn heavily on its foreign currency reserves to meet government salary obligations. According to reports, those reserves have declined by at least $30 billion over the past five months.
On Tuesday, Iraqi Prime Minister Ali Zaidi announced plans to increase the country’s oil production, saying Iraq should raise production to more than 10 million barrels per day by 2030.
At the beginning of this year, Iraq’s oil production reached a peak of approximately 4.4 million barrels per day. Of this amount, around 3.5 million barrels were exported, while approximately one million barrels were used for domestic consumption. However, exports were severely disrupted on February 28 following the outbreak of the war involving the United States, Israel, and Iran, with exports falling on some days to below 250,000 barrels per day.
Zaidi has also instructed the Ministry of Oil to prepare for a major oil conference and invite leading international oil companies to participate.
If political tensions do not disrupt the process and security conditions remain stable, increased oil production and exports could significantly raise government revenues. For both Iraq and the Kurdistan Region, greater oil production could provide additional resources for economic activity, investment, and development.