Iraq targets 6m bpd crude oil output by 2028

Iraq will increase its crude oil production to 6 million barrels per day (bpd) by 2028, a senior government official has said.

The ambitious plan aims to support production levels and increase exports, state-owned Iraqi News Agency (INA) reported, citing deputy minister for extraction affairs Basim Khudair.

Iraq, the second-largest producer in Opec, extracts more oil than allowed under its official quota. It has repeatedly pledged to compensate for the additional quantities of crude it has pumped. However, during the first half of 2024, it overproduced 1.2 million bpd, according to an assessment by secondary sources cited by Opec.

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In March, Baghdad agreed to cut its crude exports to 3.3 million bpd to compensate for exceeding its Opec+ production quota, but it continued to overproduce until a new agreement was put in place in July.

The country’s crude oil exports range between 3.35 and 3.4 million bpd.

Following the August visit of the Opec secretary general to Iraq, Baghdad reiterated it would reduce its oil output “in the coming months”.

Opec members’ non-compliance with quotas offsets the producer group’s efforts to push prices up.

Last week, eight Opec+ members, including Iraq, agreed to delay the gradual return of oil output to boost crude prices.

Iraqi prime minister Mohammed Shia Al-Sudani revealed plans for major oil, gas and petrochemical projects during a meeting with senior executives of US Oilfield services company Baker Hughes.

The Iraqi market is a promising one and the government is planning major projects in the oil, gas and petrochemical sectors, Al-Sudani said.