BAGHDAD, Aug 21 — Iraq’s prime minister said Friday that he wants to increase the country’s oil exports to as much as 10 million barrels a day within six years.
Crude oil sales account for nearly 90 per cent of Iraq’s revenue but its exports have been hurt by the outbreak of the Middle East war between Iran and the United States, which choked off the Strait of Hormuz.
Iraq, an Opec founding member, was forced to halt production in most of its oil fields during the war as reservoirs filled up.
“We are working to increase Iraq’s export share within the Opec+ framework, and we aim to reach 8 to 10 million barrels per day in six years,” Ali al-Zaidi told a panel in Baghdad.
Baghdad recently asked Opec to increase its production quota because of the war’s impact.
Before the conflict began, Iraq produced around four million barrels per day, and exported an average of 105 million barrels per month, mostly from its Basra oil terminal via Hormuz.
Due to the waterway disruption, it began exporting crude using tanker trucks through Syria, as well as through a pipeline to the Turkish port of Ceyhan.
“The closure of the Strait of Hormuz poses a major challenge,” said Zaidi.
He said Baghdad was working to increase oil exports via Ceyhan, as well as Baniyas in Syria and Aqaba in Jordan.
After a drop following the closure of the Hormuz strait, Iraqi oil exports recovered slightly to around 49 million barrels in July, with more than 30 million of them passing through the strait.
In the first two weeks of August, Iraq exported an average of two million barrels per day — its highest level since the start of the Middle East war.
While Baghdad relies heavily on foreign currency earnings from oil sales, authorities are seeking to diversify the country’s economy. — AFP
