Iraq to Keep Crude Output at 1.4mbpd Amid War Disruption

Iraq will keep crude oil production at around 1.4 million barrels per day, said Oil Minister Hayan Abdel-Ghani, less than a third of the level before the U.S.-Israeli conflict with Iran.

The minister said that 200,000 bpd is being transported by truck through Turkey, Syria, and Jordan and that Iraq has put in place a plan to manage the current disruptions.

Oil production from Iraq's main southern oilfields, where most of its oil is produced and exported, has plunged 70% to just 1.3 million bpd, sources said on March 8, as the country is unable to export via the Gulf due to the war.

The drop in production and ‌exports is set to strain Iraq's already fragile finances as the state relies on crude sales for nearly all public spending and more than 90% of its income.

Under pressure to mitigate the losses, the oil ministry has asked the Kurdistan Regional Government (KRG) if it would pump at least 100,000 bpd from its state-managed Kirkuk oilfields to Turkey's Ceyhan port, sources said.

Abdel-Ghani said that Iraq will sign an agreement on exporting oil through the Ceyhan pipeline, but he did not give ‌further details.