Oil & Gas

Iraq has initiated a significant project to expand its oil storage capacity, aimed at bolstering the country’s crude oil exports and improving the efficiency of transporting oil from fields to export terminals. On July 25, 2024, Deputy Prime Minister for Energy Affairs and Minister of Oil Hayyan Abdul Ghani inaugurated the Zubair/2 storage facility, which has been upgraded with new turbine pumps. This expansion has increased the facility's capacity to 2.3 million barrels per day, ensuring a steady and reliable supply of oil to export ports.

The Iraq oil sector is setting ambitious goals to raise its production levels to between 7 and 8 million barrels per day by 2027, with plans to boost exports to approximately 5 million barrels per day. This is a significant increase from the current average of 3.3 million barrels per day. Minister Hayyan Abdul Ghani highlighted that the recent upgrades, including the addition of new turbine pumps each capable of handling 1.15 million barrels per day, will enhance the pumping capacity by an additional 300,000 barrels per day.

The Zubair warehouse expansion is part of a broader strategy by the Ministry of Oil to improve and sustain export capabilities. This project is closely aligned with the ongoing Basra-Haditha pipeline initiative, which aims to provide greater flexibility in transporting crude oil to refineries, storage facilities, and power stations. The Basra-Haditha pipeline is a key strategic endeavor designed to boost Iraq’s economic stability by creating new export routes and increasing the country’s oil export capacity.

Looking ahead, the Ministry is also planning to diversify export outlets to mitigate geopolitical risks. A study supported by top international consulting firms is underway to develop a northern export system. The Basra-Haditha pipeline, which will link to the Haditha depot and potentially connect to the Mediterranean port of Tartous and the port of Aqaba, represents a crucial step in this diversification effort. These developments are expected to enhance Iraq’s ability to export oil to European and North American markets, strengthening the country’s position in the global oil market.