Iraq Moves to Restore Oil Output as Strait of Hormuz Situation Stabilises

Mohammed Jangadost 3 hours ago
Iraqi Ministry of Oil.
Iraqi Ministry of Oil.

The Iraqi Ministry of Oil has launched a broad campaign to restore crude oil production and export levels following what it described as the normalisation of conditions in the Strait of Hormuz, instructing major southern oil fields to operate at maximum capacity.

Production Targets Raised to Pre-Crisis Levels

The ministry said it is working to return output to previous levels of more than 3 million barrels per day within the next one to two months, although officials noted that timelines may vary across individual fields depending on operational conditions.

According to ministry spokesperson Salim Farhood, the plan aims to accelerate export flows by taking advantage of improved regional stability and developments linked to U.S.–Iran understandings that have contributed to easing tensions in the Gulf shipping corridor.

Focus on Gas and Domestic Energy Supply

In the current phase, the Ministry of Oil is prioritising fields that produce liquefied petroleum gas (LPG) and associated gas, as part of efforts to strengthen domestic energy supply.

Officials said the strategy is intended to ensure adequate gas feedstock for the Basra Gas Company (BGC), which supplies fuel for electricity generation and household consumption across Iraq.

The move is also aimed at addressing ongoing domestic energy shortages and improving fuel availability for power stations.

Directives to Major Southern Oil Fields

The ministry has issued operational directives to key southern oil installations, including the Rumaila, Zubair, West Qurna 1, West Qurna 2, and Artawi fields.

Field management teams have been instructed to resume production at full capacity and channel output into primary storage and export infrastructure, in order to restore Iraq’s oil flows to pre-disruption levels.

Officials described the measure as part of a coordinated effort to stabilise production and ensure continuity across the country’s most critical energy assets.

Export Logistics and Tanker Readiness

Alongside the increase in upstream production, Iraqi oil companies have begun preparations to reposition oil tankers and reinforce export logistics at southern terminals.

The Ministry of Oil said crude export operations are being aligned with production increases to ensure uninterrupted shipments through Iraq’s southern export outlets.

Spokesperson Farhood stressed that production, storage, and export activities are being managed in parallel to maintain stability in global shipments and secure Iraq’s revenue stream from oil exports.

Mohammed Jangadost

3 hours ago