Iraq Eyes Doubled Oil Production by 2032 with Ambitious 10 Million Bpd Target

Iraqi Prime Minister Ali Al Zaidi has unveiled a significant plan to bolster the nation's oil sector, setting a target to increase production to 10 million barrels per day (bpd) by 2032. This ambitious goal includes an anticipated contribution of approximately one million bpd from the Kurdistan region. In October, Iraq's oil exports reached about 3.4 million bpd.

During discussions with Kurdistan Region Prime Minister Masrour Barzani in Baghdad, Mr. Al Zaidi emphasized that this production increase would yield positive impacts on national development and the economy. Iraq has been actively advocating for higher production quotas from Opec countries, especially as the economic repercussions of the Iran war and increased investment by major oil producers place pressure on Baghdad to ramp up its output.

The conflict has notably impacted Iraq, leading to substantial export reductions and a significant loss of oil revenue, which typically constitutes around 90 percent of the government's income. Oil Minister Basim Mohammed Khudair confirmed to the state news agency INA that Iraq is engaged in discussions with Opec to raise its export limits. "There is ongoing dialogue with Opec to raise the export quota, given Iraq's unique circumstances and the conditions it has faced over the past five decades," Mr. Khudair stated, adding that Iraq "deserves to increase its production rates" to fund infrastructure projects and government initiatives.

Currently, Iraq's Opec production quota stands at 4.431 million bpd. Prior to the Iran war, Iraq's production was approximately 4.4 million bpd. Following disruptions in the Strait of Hormuz, production and exports saw a sharp decline, with exports falling from 3.36 million bpd in February to 131,000 bpd in April, resulting in a drastic reduction in monthly oil revenue from an average of $7 billion, though exports saw a recovery in October.

To support its production goals, Baghdad is working to finalize multi-billion dollar oil and gas agreements, primarily with U.S. companies such as Chevron, HKN Energy, and Halliburton. Furthermore, Iraq is exploring new export routes to mitigate reliance on the Strait of Hormuz. These potential routes include pipelines to Syria's Baniyas port on the Mediterranean, to Jordan's Aqaba port, and the existing Iraq-Turkey pipeline to Ceyhan.