Iraq’s oil exports rebound to 2 million bpd: Oil ministry

ERBIL, Kurdistan Region - Iraq’s oil exports have rebounded to 2 million barrels per day (bpd) since the beginning of August, the oil ministry announced Friday, signaling a steady but slow recovery toward pre-war production levels following months of regional conflict.

Iraqi oil minister Bassim Khudair told reporters on Friday that negotiations are underway regarding oil exports, adding that "the presence of four oil tankers loading crude oil, and that exports since the beginning of the month have averaged two million barrels per day, while exports for the seventh month (July) reached about 49 million barrels."

The announcement comes after Iraqi oil exports plummeted following the outbreak of the Iran war in late February, which disrupted shipping through the Strait of Hormuz - the route for 90 percent of Iraq's oil exports.

Iraqi crude production fell from about 4.14 million bpd before the crisis to 1.49 million bpd at the height of the blockade, according to official figures. Before the disruption, Iraq exported around 106 million barrels of crude per month, with a large share passing through the Strait of Hormuz.

Khudair stressed that "the Ministry of Oil's staff, represented by the Oil Marketing Company, the Basra Oil Company, and other companies, are making exceptional efforts to maximize exports," noting that "more than 85 percent of the budget relies on exports."

The minister told state media Saturday that the crisis in the Strait of Hormuz has deeply impacted the country's crude exports as Baghdad seeks to diversify exports through alternative routes.

"We must find solutions to prevent a recurrence," Khudair said, adding that Iraq's oil fields "are ready to restore export levels to their pre-war rates."

Iraqi oil exports dropped to 18.6 million barrels in March, generating about $1.96 billion in revenue, compared with more than 99 million barrels and $6.81 billion in February, according to figures from Baghdad's oil ministry.