Iraq’s oil cash bonanza masks deeper problems
Soaring oil prices are spurring renewed IOC investment but exposing infrastructure gaps
Iraq’s oil export revenues hit an eight-year high in February as prices surged, while the completion of an expansion project at one of the country’s largest fields supports ambitions that high prices might spur renewed IOC investment. However, as Opec eases production limits, underlying constraints to growth are re-emerging. The commissioning of a 50,000bl/d expansion at the giant West Qurna-2 field—raising capacity to 450,000bl/d—is cause for celebration but also demonstrates how expectations for Iraq’s oil sector have been downgraded. The contract signed with Russia’s Lukoil at the turn of the last decade envisioned production from the 14bn bl asset reaching 1.8mn bl/d five years ago. And

Also in this section
11 July 2025
Equinor and its partners at Norway’s largest oilfield have pulled the trigger on a fresh $1.3b investment that will maintain high output for longer
11 July 2025
Reassessment of the country’s export-facing gas policy coincides with worsening domestic market backdrop
10 July 2025
Without sanctions relief, there is little reason to believe the latest potential attempt at exports from the Russian liquefaction project will be more successful than the one last summer
9 July 2025
Efforts to restructure and boost investment appear to be working, but doubts remain about the plan to almost double crude production by 2030