Iraq has set ambitious plans to significantly boost its oil production capabilities, aiming to reach more than 6 million barrels per day by 2029. This was confirmed by Bassem Muhammad Khudair, the Iraqi Oil Ministry’s Oil Deputy for Exploration and Extraction, in a recent statement. According to reports from the Specialized Energy Platform, Baghdad intends to accomplish this ambitious goal through rigorous crude oil explorations and increased drilling activities across the nation.
Currently producing about 4 million barrels of oil daily, Iraq is strategically working to gradually ramp up its output in the coming years. "The plan to increase Iraq's crude oil production to more than 6 million barrels per day by 2029 is ongoing," Khudair stated. He emphasized that the ministry's efforts are underpinned by detailed five-year plans aimed at enhancing oil and gas production levels.
The Oil Ministry has inked a recent agreement with British oil company BP, intending to redevelop four oil and gas fields located in Kirkuk. This development is seen as a crucial step towards meeting Iraq's production increase target. The agreement will soon be formalized with BP, paving the way for an expanded oil output in the country.
Khudair pointed out that these efforts would be supported by projects that span across all Iraqi governorates, utilizing the exploration activities carried out by oil exploration companies alongside comprehensive drilling and production operations in fields marked for development through six licensing rounds.
Current extraction projects include an integrated gas development initiative in the Artawi field in southern Iraq, as well as further developments in Kirkuk's four significant fields. The signed contracts with BP are anticipated to play an important role, with the Iraqi official noting that currently, national extraction companies manage around 70% of the operational activities in the oil sector.
Iraq, recognized as the second-largest oil producer within the OPEC+ framework, reaffirmed its commitment to adhere to production agreements earlier this year. In February 2025, the Iraqi government declared its dedication to fulfilling these agreements while also planning a revised strategy to compensate for previous excess production. OPEC+ is currently maintaining production reduction initiatives, amounting to approximately 5.85 million barrels per day. This figure represents about 5.7% of global oil supplies, a deliberate strategy established during agreements made since 2022.
On March 3, 2025, OPEC+ recommitted to gradually reintroducing production beginning in April, which is expected to initiate gradual changes in Iraq’s oil output according to the adjusted policy.
As the plan to increase production unfolds, initial projections suggest that Iraq's output will begin this upward trajectory in April 2025, with expectations for significant growth by 2026. Current assessments indicate that Iraq's oil production will remain around 4 million barrels per day during the interim period.
With the planned return of previously reduced quantities, production is expected to rise to approximately 4.012 million barrels daily. However, after accounting for necessary compensations from previous shortfalls, it may decline to 3.892 million barrels per day, before increasing to 4.024 million by May. Ultimately, following the compensation adjustments, the output is projected to stabilize around 3.919 million barrels per day.
As Iraq moves toward its ambitious production goals, analysts continue to observe the developments surrounding the oil and gas sector. The initiatives being taken signify not only economic aspirations but also a strategic positioning within the global oil market.
These changes herald a significant point in Iraq's ongoing oil production story as it seeks to take its rightful place among the top producers worldwide while navigating the complexities of the modern energy landscape.
In summary, Iraq is leveraging international partnerships, like with BP, to enhance its oil capacity while addressing the dynamic global energy demands, ensuring that it remains a pivotal player in the OPEC+ alliance and beyond.
