Iraq’s oil exports via Hormuz drop to 10m barrels in April

Iraq exported 10 million barrels of crude through the Strait of Hormuz in April, compared to 93 million barrels per month before the Iran conflict, the country’s new oil minister said.

Circumstances are difficult as a result of war in the region, the state-run Iraqi News Agency cited Basim Mohammed Khudair as saying.

The country, Opec’s second-largest oil producer, is exporting about 200,000 barrels per day from Kirkuk through Turkey’s Ceyhan port, with plans to increase flows to 500,000 bpd, Shafaq News reported.

The minister said an increase in crude output depends on the return of global oil companies to the Kurdistan region, many of which have suspended operations during the conflict.

“The government is treating the energy file in the Kurdistan region as a priority,” he added.

Khudair said crude production from Basra and Kirkuk stands at just 1.4 million bpd.

He insisted Opec and the global community must support raising Iraq’s production ceiling, as funds are needed to meet infrastructure, public services and state operating costs.

The near-closure of the strait has cut the flow of around one-fifth of the world’s oil.

Earlier this month, oil ministry spokesman Sahib Bazoun said the government expects a planned Basra-Haditha pipeline project to create 15,000 local jobs.

The $5 billion pipeline is being constructed under an oil-for-projects agreement signed by Iraq and China in 2019.

Further reading:

• Iraq says $5bn Basra pipeline will create 15,000 jobs
• Iraq nominates banker for PM as cash crisis deepens
• Iraq seeks to revive oil pipeline through Saudi Arabia