Iraq oil exports hold near 2M bpd amid Hormuz talks

Shafaq News- Baghdad

Iraq’s crude exports have averaged about two million barrels per day in August, while Baghdad continues talks with the United States and Iran to secure passage for oil tankers through the Strait of Hormuz, a senior oil official said on Friday.

Midland Oil Company Director General Mohammed Yassin told Shafaq News that the Oil Ministry is working to raise exports further but has not set a specific target.

Iraq shipped about 49 million barrels in July, still well below pre-war levels. On August 17, Prime Minister Ali Al-Zaidi gave the Oil Ministry one week to produce tangible results in addressing the export crisis, ordering round-the-clock operations, faster work on alternative routes, and contracts with international companies to market Iraqi crude.

Before the war, Iraq routed about 95% of its crude exports through Hormuz. Oil revenue accounts for roughly 90% of federal government income.

The country’s state oil marketer SOMO is now negotiating with US and German shipping companies over Iraqi-flagged tankers. A government source told Shafaq News earlier this week that the US company rejected Baghdad’s flag requirement, while the German company accepted it. Iran had agreed to exempt Iraqi shipments from transit fees, but Baghdad still needs US authorization for the arrangements.

Read more: SCOOP: Iraq in talks with US-Iran over Hormuz oil shipments

SOMO has also offered discounts of up to nearly $30 per barrel on some Basrah crude cargoes loaded inside Hormuz, according to Reuters.