Shafaq News- Baghdad

Iraq's Oil Minister Basim Mohammed Khudair confirmed on Saturday that the country is currently producing 2.7 million barrels of oil per day, with exports ranging between 1.5 and 1.7 million barrels daily, revealing that talks are underway with Iran to allow Iraqi oil exports through the Strait of Hormuz, though no agreement has yet been implemented.

Despite challenges linked to the strait, the ministry has managed to secure oil products for citizens, Khudair said at a press conference, adding that the ministry is working to develop the oil industry, increase production and exports, build infrastructure, boost investment, and attract global companies to optimally invest in oil and gas.

He noted that exploration teams affiliated with the ministry are conducting surveys in several provinces to offset depleted reserves, explaining that the ministry is pursuing two parallel tracks on the gas file: ending gas flaring and investing in gas fields. "Iraq spends large sums on gas, so we are working to invest in it, with 14 contracts awarded to global companies for this purpose.”

Khudair said his recent visit to the United States marked “a new chapter of cooperation with global companies,” stressing that the presence of American firms in Iraq “reflects the attractiveness of the country's investment environment.”

Global companies are capable of training Iraqi personnel and contributing to infrastructure development, as well as attracting large numbers of workers, Khudair stated, noting that the ministry signed memoranda of understanding and contracts covering seven provisions, including two contracts for developing fields and investing in associated oil and gas, alongside an annex to the Qurna-2 agreement and the Nasiriyah project and four blocks.

The minister also added that three memoranda of understanding signed with American companies would provide significant investment capacity, pointing also to a step related to an export project through the port of Aqaba.

The Basra-Fishkhabour pipeline project will be built under a build-operate-transfer (BOT) system, with a company handling construction and operation under an investment arrangement, according to the minister. Current oil output cannot reach previous levels, he said, but exports could return to prior volumes once the war ends.

On the oil agreement with Turkiye, Khudair said the deal had been renewed with certain conditions, while Ankara had proposed limiting the arrangement to oil transport with Iraqi participation in some projects, clarifying that the planned quantity of 700,000 barrels cannot be supplied through Kirkuk.

Regarding the oil and gas file in the Kurdistan Region of Iraq (KRI), Khudair confirmed the existence of a tripartite agreement between the federal government, the region, and oil companies, which can be amended through negotiation. The ministry does not differentiate between citizens in Kurdistan and those in any other province, he stressed. “The KRI file requires extensive dialogue, with continued negotiation essential to reaching solutions that serve the national interest.” 

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