Iraq has announced plans to spend $300 billion to increase its oil production capacity to 10 million barrels per day (bpd) by 2032. Prime Minister Ali Al-Zaydi elaborated on this plan and the development projects for oil fields awarded to American and other companies during a meeting with Iraqi businessmen in Amman.
Development of Oil Fields and Meeting 12 Percent of Global Demand
Al-Zaydi emphasized that with these projects, Iraq, as the second-largest oil producer in OPEC, will be able to meet 12 percent of global crude oil demand by 2032. He added: "In 2032, we will produce 10 million barrels per day... This is a plan we are implementing."
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Financing and Infrastructure Costs
The Prime Minister of Iraq also stated that revenues from increased oil production, along with non-oil revenues they are developing, will support the country's budget. He expects Iraq's budget in 2032 to exceed $300 billion, with a substantial portion allocated to infrastructure and services.
Earlier this month, the Iraqi cabinet drafted the budget for 2027, which is expected to be approved by parliament in the coming weeks. Iraq's budget for the current year is projected to be around 217 trillion Iraqi dinars (equivalent to $167 billion). The country expects oil exports to return to pre-war levels, reaching about 4 million barrels per day.
Although the oil price is conservatively projected at $58 per barrel, Baghdad expects a budget deficit of about $32 billion, which is significantly lower than the $49 billion deficit projected in Iraq's historic three-year budget of $153 billion for the years 2023 to 2025.
Iraq's financial deficit increased to about $22 billion in the first seven months of 2026, due to a decline in oil exports and rising salaries of government employees. Experts predict that this year's deficit will reach one of the highest levels in contemporary Iraqi history.
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