Iraq has raised production from three key projects in the country’s oil heartland to full capacity as tankers have started arriving to export cargoes, a person familiar with the operations said.
The increase follows an order from state-run Basra Oil Co., which oversees fields in the country’s south, to boost output at West Qurna 1, North Rumaila and Artawi, according to the person who asked not to be named citing confidential information and a July 3 notice to the fields’ operators that was seen by Bloomberg.
Iraq’s oil ministry and Basra Oil didn’t immediately comment.
It’s the latest move in Iraq’s wavering production over the past month. The country had ordered some fields to lower output last month as the erratic reopening of the Strait of Hormuz had hindered tanker loadings and storage tanks were running full. That came just days after Baghdad had asked operators to boost supply following an interim U.S.-Iran peace deal.
The fluctuating production levels have left Iraq lagging behind some of its Gulf neighbors in getting supply to the market, with the United Arab Emirates already restoring its exports to prewar levels and Saudi Arabia getting close.
There have been signs that some of Iraq’s restrictions are easing. Shipping data compiled by Bloomberg indicates that vessels carrying the country’s oil have been exiting the Persian Gulf. Traders said this month that French oil major TotalEnergies SE was offering millions of barrels of Iraqi crude that can be promptly delivered to Asia, helping accelerate the Middle East nation’s shipments.
Output from the country’s south had dropped to around 1.1 MMbpd at the end of June, less than half of Basra Oil’s capacity. They were at about 1.5 MMbpd in around the middle of last month, Basim Abdul Kareem, director general of Basra Oil, said at the time.