Iraq exported only 10 million barrels of crude oil through the Strait of Hormuz in April, down sharply from about 93 million barrels monthly before the Iran conflict, the country's new Oil Minister Basim Mohammed announced at a press conference on Saturday. The effective closure of the strait has severely disrupted regional supply chains.
Minister Mohammed emphasized that oil tankers are reluctant to enter the strait due to insurance constraints. The closure of the Strait of Hormuz has curtailed oil exports from Saudi Arabia, the UAE, Kuwait and Iraq, sending global oil prices sharply higher. Iraq is currently producing 1.4 million barrels per day, but exports through the Hormuz route remain at minimal levels.
Crude exports through the Kirkuk-Ceyhan pipeline resumed in March after Baghdad and the Kurdistan Regional Government agreed on restarting flows. Mohammed said Iraq is exporting 200,000 barrels per day through Ceyhan port in Türkiye, with plans to increase this to 500,000 barrels. Baghdad is also in talks with Ankara on a new cooperation agreement covering upstream and downstream projects, expanding beyond the previous deal limited to crude exports.
Iraq is negotiating with U.S. companies including Chevron, ExxonMobil and Halliburton on developing oil and gas projects. Minister Mohammed urged these firms to sign contracts as soon as possible to help secure significant revenues for Iraq. The country also plans to engage with OPEC to boost production and export capacity, with Baghdad aiming to reach a production capacity of 5 million barrels per day through this dialogue.
Two Iraqi oil officials told Reuters in April that Iraq has no intention of leaving OPEC or OPEC+ and supports a strong organization to ensure stable and acceptable oil prices, following the United Arab Emirates' decision to leave the group. As Iraq accelerates alternative routes to circumvent Hormuz constraints, the region is experiencing a fundamental reshaping of its energy security architecture.
Key Takeaways:
1. Iraq's crude oil exports through Strait of Hormuz dropped to 10 million barrels in April, down from 93 million barrels monthly before Iran conflict.
2. Exports remain minimal as tankers avoid strait due to insurance concerns; Iraq currently produces 1.4 million barrels per day.
3. Kirkuk-Ceyhan pipeline exports 200,000 barrels daily via Ceyhan port, with plans to increase to 500,000 barrels.
4. Iraq negotiates with Chevron, ExxonMobil and Halliburton on developing oil and gas projects to secure revenues.
5. Baghdad aims to reach 5 million barrels per day production capacity through OPEC dialogue and remains committed to the organization.
