The escalation of the situation in the Persian Gulf has already directly affected one of the world's largest oil producers. Iraq was forced to cut oil production by half after stopping exports through its southern ports amid the closure of the Strait of Hormuz and the escalation of the military conflict in the region. Deputy Prime Minister and Oil Minister Hayyan Abdul Ghani announced this in a video address on Monday.
According to him, before the crisis, Iraq was producing approximately 4.4 million barrels of oil per day under the OPEC quota. Of this volume, approximately 3.4 million barrels were exported daily, mostly through southern terminals on the Persian Gulf coast.
After the closure of the Strait of Hormuz, oil shipments through southern ports stopped completely within two to three days. This forced Baghdad to urgently reduce production to an estimated 1.5-1.6 million barrels per day.
“Production was reduced to the level needed to meet domestic consumption and operate refineries,“ the minister said.
As a result of the export restrictions, operations were temporarily suspended in the largest oil fields in the south of the country, including West Qurna-1, West Qurna-2, Majnun and Fayhaa, as well as in several fields in Maysan province in southeastern Iraq.
However, limited production continues in certain fields to support the domestic energy grid. Specifically, production continues in the North Rumaila and Zubair fields, as well as in the Siba gas field, which produces associated gas needed to power plants.
According to the minister, Iraqi oil refineries continue to operate at full capacity and produce gasoline, diesel fuel, kerosene and liquefied petroleum gas for the domestic market.
Abdul Ghani also stated that the country maintains strategic gas reserves. Daily production is approximately 6,000 tons, while underground reserves exceed 50,000 tons, which allows for stabilization of the domestic market if necessary.
At the same time, the Iraqi government is looking for alternative routes for oil exports. Among the options being considered are deliveries through the Syrian port of Baniyas and the Jordanian port of Aqaba.
In addition, Baghdad is negotiating with the authorities of Iraqi Kurdistan about the possibility of transporting oil from the Kirkuk fields via pipeline to the Turkish port of Ceyhan. The potential capacity is from 200,000 to 250,000 barrels of oil per day, but a final agreement between the parties has not yet been reached.
The minister stressed that finding new export routes remains a priority for the government amid the ongoing instability in the region and threats to global energy infrastructure.
The UN recently called for the safe passage of humanitarian supplies through the Strait of Hormuz, and the United States announced plans to create a coalition to escort ships through the Strait of Hormuz.
The news was published based on an information exchange agreement between Fakti.bg and Kazinform