Oil production to reach pre-war levels: Iraq
AI Summary
Iraq expects to restore oil production to pre-war levels within one to two months following disruptions caused by conflict and the Iran blockade of the Strait of Hormuz. The reopening of this vital strait and agreements between Iran and the US have enabled a gradual recovery of exports crucial to Iraq's economy.
Baghdad: Iraqi authorities predict oil production will return to peacetime levels "within one to two months", state media reported, after the Middle East war caused exports to plummet.The war and Iran's ensuing blockade of the Strait of Hormuz choked off shipments and prompted production cuts in key oil-producing countries including Iraq, shaking world energy markets.But a deal agreed this week between Washington and Tehran to end the fighting has offered some relief, despite follow-up negotiations having stalled.Read more: Iran deployed covert Iraq drone cells to target Gulf states: ReportThe spokesman for Iraq's oil ministry, Salim Farhoud, told the state-run Iraq News Agency (INA) late Friday that "we can return within one to two months to the previous production levels"."The fields that reduced their production capacity have currently begun raising this capacity," he said.Before the war broke out in late February, Iraq exported about 3.5 million barrels per day of oil, the majority of it via the Hormuz Strait.But the OPEC founding member was forced to halt production in most of its oil fields as reservoirs filled up, limiting its exports to routes via neighbouring Turkey and Syria.The vital strait began reopening this week following the signing of the initial agreement between Iran and the United States.Iraqi Oil Minister Bassem Khodeir on Friday told INA that exports "will return gradually based on the smooth flow through the Strait of Hormuz".Read more: Iran's Revolutionary Guards set up covert Iraqi cells to attack Gulf neighbors, sources sayIn April, Iraqi crude exports via the waterway declined to 10 million barrels from an average of 93 million before the war, according to authorities.Iraq is highly reliant on crude exports, which normally account for about 90 percent of its revenues.