Shafaq News- Baghdad

Iraq’s new Oil Minister Basim Khudhair al-Abadi warned on Saturday that escalating regional tensions threaten energy flows through the Strait of Hormuz, as Baghdad moves to ramp up crude exports via Turkiye and address long-standing production disputes with the Kurdistan Region.

Speaking during a press conference at the ministry on his first day in office, he pointed to a sharp decline in exports, stating that Iraq shipped an average of 93 million barrels per month before the latest US-Iran escalation, while volumes fell to around 10 million barrels in April.

Despite the slowdown, Iraq continues to export around 200,000 bpd from Kirkuk through Turkiye’s Ceyhan port, with plans to raise flows to as much as 500,000 bpd. Achieving that target, he remarked, depends on the return of international oil companies operating in the Kurdistan Region, several of which have recently suspended operations.

“The government is treating the energy file in the Kurdistan Region as a priority,” he added, referring to efforts aimed at narrowing gaps between Baghdad and Erbil and aligning production frameworks across the country.

Khudhair noted that crude production from Basra and Kirkuk currently stands at no more than 1.4 million barrels per day (bpd), reflecting continued uncertainty in one of the country’s key economic sectors.

He also urged the Organization of the Petroleum Exporting Countries (OPEC) and the international community to support an increase in Iraq’s production ceiling, arguing that higher output is needed to fund infrastructure, public services, and state operating costs.

Read more: Iraq's oil lifeline is blocked: Here is why the crisis runs deeper than Hormuz