Most oil producers in the Middle East will see their crude oil production surge by double-digit percentages next year, rebounding from this year’s shut-ins due to the Iran war and the closed Strait of Hormuz.
Three supertankers laden with crude oil successfully exited the Strait of Hormuz last week, carrying Iraqi and Emirati oil, Reuters has reported, citing data from Kpler and LSEG. The vessels switched off their transponders to avoid detection.
OPEC’s second-largest producer, Iraq, is offering huge discounts of up to $33.40 per barrel off the official selling prices for its crude that has to move through the Strait of Hormuz.
Crude oil production from Iraq’s southern fields has dropped by 70% since the start of the U.S. and Israeli war on Iran, with the average daily production at 1.3 million barrels, compared with 4.3 million barrels daily before the war began.
Iraq’s cabinet has approved an agreement with Russia’s Lukoil to transfer oil production operations at the West Qurna 2 field to Basra Oil Company, marking a major shift in management of one of the country’s largest upstream assets.
Iraq’s Ministry of Oil announced the full operation of new refineries at 100% production capacity. Officials said the move marks a major shift in producing high-quality refined fuels.
Iraq seeks a replacement for Lukoil at West Qurna 2 to protect exports and attract new foreign partners.
The KM250 project adds 250 million standard cubic feet per day (MMscf/d) of new processing capacity, boosting Khor Mor’s total output to 750 MMscf/d—a 50% increase. The expansion will significantly strengthen power generation across the KRI and contribute to Iraq’s broader electrification goals by delivering cleaner-burning natural gas to regional power plants.
Excelerate Energy has signed a definitive agreement with Iraq’s Ministry of Electricity to develop the country’s first floating LNG import terminal at the Port of Khor Al Zubair, the company said on Tuesday.
ExxonMobil signed agreements that lay the groundwork for it to explore Iraq’s giant Majnoon oil field, ending the company’s near two-year hiatus in the country.