Oil Ministry Unveils Plan to Gradually Restore Production Levels and Boost Exports

Iraq's Oil Ministry announced on Sunday initial plans to gradually restore national production to pre-crisis levels, which ranged between 4.2 and 4.3 million barrels per day. Nassir Aziz, the Undersecretary for Extraction Affairs, stated that his top priorities include overseeing the rehabilitation and development of southern fields. He explained that production in these fields was previously reduced due to the Gulf War crisis, in response to local demand and oil export dynamics. Aziz instructed oil companies to re-evaluate field conditions, accelerate production and pumping operations, and address technical and operational obstacles. The objective is to boost oil exports via southern ports and ensure the continuous supply of crude oil to national refineries. He affirmed that the plans aim to increase oil exports, especially from southern outlets, to approach 3.5 million barrels per day, subject to the readiness of fields, facilities, and pumping, storage, and export plans. Aziz also indicated that the Ministry relies on national efforts, in cooperation with international companies, to restore production capacities that declined during the crisis. Work is underway to gradually ramp up production towards planned levels, despite technical and logistical challenges. He highlighted the importance of monitoring production in the North Oil Company and enhancing oil transfer operations from southern fields to support exports through Turkey's Ceyhan outlet. This aims to diversify export channels, ensure sustainable production, and maximize national revenues, in addition to monitoring production from Central Oil fields. Furthermore, the extraction sector will focus on developing exploration blocks and oil and gas fields, thereby enhancing national reserves and increasing production. Support will be provided for associated and free gas investment, considered strategic for securing energy and industrial needs and reducing reliance on imports. Finally, Aziz affirmed his commitment to strengthening relations with operating oil companies and providing a supportive environment for their activities. He also emphasized encouraging reputable investment companies to participate in developing the oil industry, in line with the Ministry's plans to improve performance efficiency and expand investment horizons in the sector.