Iraq to hike oil output to 8m barrels per day by 2027

Reuter/Essam Al-Sudani

Iraq’s energy committee has backed the government’s plan to produce eight million barrels per day of crude by 2027.

The oil, gas and natural resources committee also supported the government’s plan to become self-sufficient in natural gas production, since it currently imports gas to operate power plants and industrial facilities, state-run Iraq News Agency reported.

Committee member Zainab Juma Al Mousawi emphasised the need to develop plans for the oil sector by backing state-owned companies yet support foreign companies working in the sector to drive investment.

“Oil is the lifeblood of the Iraqi economy. The development of the oil sector will provide the financial resources to develop other economic sectors,” Al-Mousawi added.

She stated that the country expects huge investments in the oil refining sector in the coming period, given Prime Minister Mohammed Shia Al Sudani’s effort to secure Iraq’s fuel needs and lower energy import bill.

Refineries will be offered for investment after the oil ministry completes the review of refinery portfolios in the northern, central and southern governorates, she stressed.

In July Al Sudani said Iraq will begin trading crude oil for Iranian gas to end recurring payment delays to Tehran due to required US approval for such transactions.

He said Iran had cut gas exports to Iraq by more than half as of July 1 after Baghdad failed to secure US approval to disburse owed funds, but Tehran had now agreed to resume gas exports in exchange for crude oil.