Iraq's oil exports in October 2023 reached over 3.4 million barrels per day (BPD), close to the level of 3.3 to 3.5 million barrels per day before the war with Iran. Iraq's Minister of Oil, Basem Mohammed Khudhair, announced this information to the INA news agency.
Increase in Oil Exports
This increase in exports compared to September, which averaged 2.65 million barrels per day, shows an increase of nearly 750,000 barrels per day. Of this, 250,000 barrels per day have been transferred via the Iraq-Turkey pipeline to the port of Ceyhan.
New Export Routes
Khudhair announced that Iraq is now exporting through three routes including the Strait of Hormuz, the port of Ceyhan, and oil trucks via Syria. It is expected that trucks carrying Iraqi crude oil will reach one of the Mediterranean ports by mid-October. Most of Iraq's crude oil is still exported from southern terminals in Basra and passes through the Strait of Hormuz.
Baghdad has also begun sending its crude oil through the Strait of Hormuz. Buyers are seeking to deliver shipments outside this strait to avoid costs related to war risks. The Iraqi state oil tanker company has also transported 2 million barrels of oil through the Strait of Hormuz with a very large crude carrier. This is the first time in recent decades that the state marketer SOMO has transferred its crude oil from the Strait of Hormuz.
Future Plans to Increase Export Capacity
Iraq has planned to increase its export capacity to 5 million barrels per day. This capacity increase will follow the completion of new pipelines to Fishkhabour and the Syrian port of Baniyas, as well as new export terminals in the Strait of Hormuz.
Following months of heavy losses, oil production in southern Iraq had nearly decreased by 70% at the beginning of the war, dropping to about 1.3 million barrels per day. Foreign Minister Fuad Hussein estimated Iraq's losses last week at about $60 billion. Foreign currency reserves have also decreased by $20 billion, and the central bank has weakened the dinar against the dollar for the first time in over three years. Oil accounts for nearly 90% of government revenue.
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