Baghdad: Most of Iraq's oil activities and projects have been halted due to current war conditions, a senior Oil Ministry official said Friday, as the regional conflict takes a growing toll on the country's energy sector.
According to Anadolu Agency, Bassem Mohammed Khudair, deputy oil minister for extraction affairs, informed the official Iraqi news agency INA that "most activities and projects are currently suspended due to the reality imposed by the war." He noted that production levels at oil fields could return to previous rates "within days if the crisis ends," though gas projects' continuity "depends directly on an end to the ongoing war."
Khudair explained that producing fields not reliant on imported materials are being effectively managed by Iraqi personnel in coordination with foreign companies remotely. However, construction projects face significant challenges as they heavily depend on imported materials and logistical support. He also warned that the closure of the Strait of Hormuz "poses a major obstacle to sustaining these vital projects."
Deputy Oil Minister Hayan Abdul Ghani stated that output at Basra Oil Company has been sharply reduced from 3.3 million barrels per day to 900,000 barrels. This reduction followed a halt in oil exports from southern ports, with current output directed toward operating domestic refineries. The Strait of Hormuz has been effectively disrupted since early March, with around 20 million barrels of oil usually passing through the waterway daily. This disruption has driven up shipping costs and increased global energy prices.
For nearly a month, the US and Israel have carried out an air offensive on Iran, resulting in over 1,340 fatalities, including the then-Supreme Leader Ali Khamenei. In retaliation, Tehran has launched drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties, infrastructure damage, and disruptions to global markets and aviation.