Iraq Boosts Oil Production Capacity Amid Strait of Hormuz Disruptions

Iraq's oil production capacity has surpassed three million barrels per day, and the country is successfully exporting 3 million bpd in September despite ongoing disruptions in the Strait of Hormuz. According to Oil Minister Bassim Khudair, Iraq aims to further boost output as alternative pipelines and improved export infrastructure become operational.

The government plans to expand export capacity to five million barrels per day once strategic pipelines to Fishkhabour and Baniyas are completed, along with the existing export terminals in the Strait of Hormuz. This development comes as a relief for Iraq, which was among the producers most affected by the Iran conflict.

The conflict led to a significant decline in oil exports from 4.2 million barrels per day in February to around 1.45 million barrels per day within three months. The recent escalation of retaliatory strikes between the US and Iran has further dampened hopes for peace, with no immediate signs of the strait reopening.

Iraq is now negotiating directly with Tehran for passage of its tankers, while also developing pipeline projects to bypass the strait, including links to Ceyhan in Turkey and Baniyas in Syria. An agreement with Syria for the Haditha-Baniyas oil pipeline has already been signed.