Iraq Moves to Expand Oil and Gas Production, End Gas Flaring and Diversify Export Routes

Iraq 01:37 PM - 2026-08-08

Iraqi Oil Minister Basim Mohammed Khudair.

Iraqi Oil Minister Basim Mohammed Khudair said on Saturday that the Ministry of Oil is pressing ahead with the government's programme to strengthen Iraq's position as a leading energy producer, while working to end gas flaring, develop gas fields, expand infrastructure and diversify oil export routes.

Speaking at a press conference covered by PUKMEDIA, Khudair said that despite challenges linked to the Strait of Hormuz, the ministry had succeeded in securing sufficient petroleum products for citizens.

He added that the ministry was working around the clock to implement the directives of the Prime Minister and advance the government's energy programme.

Developing the Oil Industry and Increasing Production

Khudair said the ministry is focused on expanding the oil industry, increasing production and exports, strengthening infrastructure, attracting international companies and encouraging investment to maximise the development of Iraq's oil and gas resources.

He said Iraq urgently needs to modernise its infrastructure after decades of war and terrorism, stressing that the government is committed to implementing its programme in a way that improves economic conditions and people's living standards.

The minister also said exploration teams are conducting surveys in several governorates to replenish depleted oil reserves and identify new resources.

Ending Gas Flaring and Developing Gas Fields

On the gas sector, Khudair said the ministry is pursuing two parallel objectives: ending gas flaring and developing the country's gas fields.

He noted that Iraq spends substantial sums importing gas and said the ministry is therefore seeking to increase domestic production. Fourteen contracts have been awarded to international companies as part of these efforts, he added.

Cooperation with International Companies

Khudair said the ministry is also working to expand export infrastructure and described his recent visit to the United States as opening a new phase of cooperation with international companies.

He said international firms could support Iraq by training local personnel, developing infrastructure and creating employment opportunities.

According to Khudair, the ministry signed memoranda of understanding and contracts covering seven provisions, including two contracts for developing existing agreements and associated oil and gas resources. An addendum was also signed concerning the Qurna-2 field, the Nasiriyah project and four other blocks.

The ministry also signed three memoranda of understanding with U.S. companies, which Khudair said would create significant investment opportunities. He added that work was continuing on an oil export project through Aqaba.

Iraq Seeks to Diversify Oil Export Routes

Khudair said Iraq had exported approximately 3.4 million barrels of oil per day through the Strait of Hormuz before the war, but volumes through the route have declined since the conflict began.

He stressed the need to develop alternative export routes to reduce Iraq's dependence on the strategic waterway.

The minister said the Basra-Fishkhabur pipeline project would be implemented under a Build-Operate-Transfer (BOT) model, under which a private company would finance, construct and operate the project as an investment before transferring it to the state under agreed terms.

He said Iraq's oil fields are capable of restoring production and exports to previous levels, while the government is working to ensure a secure operating environment for international companies in the energy sector.

Oil Agreement with Türkiye and Kurdistan Region

Regarding the oil agreement with Türkiye, Khudair said it had been renewed under specific conditions. He said Türkiye had proposed limiting cooperation to oil transportation and Iraqi participation in certain projects.

He also said the planned volume of 700,000 barrels per day could not be supplied through Kirkuk alone.

On oil and gas operations in the Kurdistan Region, Khudair confirmed the existence of a tripartite agreement involving the federal government, the Kurdistan Regional Government (KRG) and oil companies. He said the agreement could be amended through negotiations.

The minister stressed that the Ministry of Oil does not discriminate between citizens of the Kurdistan Region and those in other Iraqi governorates.

He said the situation in the Kurdistan Region requires further dialogue and negotiations to reach solutions that serve Iraq's national interests.

Current Production and Exports

Khudair said Iraq currently produces approximately 2.7 million barrels of oil per day, while exports range between 1.5 million and 1.7 million barrels per day.

He also revealed that the ministry is exploring the possibility of establishing oil storage facilities in several countries, with discussions and work on the issue continuing.



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