Iraq Reduced Oil Production at Southern Fields by 80%
Oil production at southern fields in Iraq has decreased by 80% since the beginning of the conflict between the United States and Israel with Iran, dropping to about 800 thousand barrels per day, and may decline further in the coming days, Reuters reports citing Iraqi officials.
“Production at Iraq’s main southern oil fields has fallen by approximately 80% to around 800 thousand barrels per day. Iraqi energy officials warned that further production cuts could be announced in the coming days if the crisis in the Strait of Hormuz remains unresolved,” Reuters writes.
It is noted that before the conflict in the Middle East, production at these fields was about 4.3 million barrels per day. According to industry sources cited by Reuters, at the beginning of March, oil production at Iraq’s main southern fields had already declined by about 70%.
Reuters reports that Iraq was forced to cut production as available storage capacity became critically limited, while exports remain suspended.
The agency notes that Iraq asked bp to reduce production at the giant Rumaila oil field by 100 thousand barrels per day, lowering output to about 350 thousand barrels per day. In addition, Iraq’s state oil company also requested the Italian energy company Eni to cut production at the Zubair field by 70 thousand barrels per day from the current level of 330 thousand barrels per day.
Iraq has also sharply reduced production at various state-operated fields, the agency notes.
The escalation around Iran has led to the effective blockage of the Strait of Hormuz, a key route for global oil and liquefied natural gas supplies from the Persian Gulf, and has affected both export levels and oil production across the region.
