The Iraqi Ministry of Oil has announced the discovery of a large oil field in the southern province of Najaf, near the border with Saudi Arabia. This is an important discovery and one of the biggest in recent years in Iraq, the fifth largest global oil producer and the third largest OPEC producer. Iraq has reserves of 145 billion barrels of oil, roughly 17% of total Middle Eastern reserves and 9% of global reserves. The country was producing about 4.5 million barrels per day before the Iran War, but its oil revenue has dropped by about 71% since then, resulting in billions of lost revenues. Of its total production, 3.5 million barrels per day were exported, 90% through the Strait of Hormuz. There may be more to come in the area in the future, as just one of the exploration blocks has estimated reserves of 8.8 billion barrels. A deal to explore the block was signed in October 2024.
According to Euro News:
“According to data announced by the Ministry, drilling
operations at the Shams-11 exploration well showed the presence of light crude
oil, with an initial production capacity of 3,248 barrels per day.”
The oil discovery was in the MUS
formation at a depth of 1,916-1,965 meters. 2D seismic surveying for her
project began in October 2025, and drilling of the Sham-1 well commenced in
January 2026.
“The announcement was made during an official meeting
between Iraqi Oil Minister Hayan Abdul Ghani and representatives from China's
ZhenHua Oil, during which they reviewed progress at the Qurnain site and
discussed advanced drilling techniques to increase the efficiency of
exploration and production operations and accelerate development.”
“ZhenHua, through its subsidiary Qurnain Petroleum
Limited, is the main operator of exploratory drilling and seismic survey
operations in partnership with the Iraqi side.”
The Chinese company plans to
implement a rapid investment plan to accelerate development.
“Baghdad is working to accelerate a strategic project to
build a pipeline linking Basra province in the south with the city of Haditha
in Anbar province near the Syrian border, with a planned export capacity of 2.5
million barrels per day.”
“According to official data issued by the Ministry of
Oil, Iraq's oil exports fell to 18.6 million barrels in March, generating
revenues of $1.96 billion (€1.77bn) — a decline of around 71 per cent in
revenue terms compared to February, when Iraq exported more than 99 million
barrels and earned $6.81 billion (€6.15bn).”
The Qurnain Block is shown on the
map below in south-central Iraq, right along the Saudi border.
Brian Wang for Next Big Future
wrote about the planned pipelines that will bypass the Strait of Hormuz. He
notes that right now about 8-8.5 million barrels in the region bypasses Hormuz,
but that these projects, with expected timelines of 3-5 years, will increase
that to 12-13 million barrels per day by then, and that new Iraqi plans could
increase that by another 2-3 million barrels per day. The first two maps below show pipelines and planned pipelines to bypass Hormuz, respectively. The third map, from Kpler, shows the likely route of the Basra-Aqaba Pipeline, which is expected to cost $5 billion.
"The 700-kilometer pipeline will run from Basra - home to some 66 percent of Iraq’s oil reserves - to the town of Haditha in Anbar, oil ministry Spokesperson Abdulsahib al-Hasnawi told the state-run Iraqi News Agency (INA)."
"The Basra-Hadith pipeline will be capable of transporting “around
2.5 million oil barrels per day and enable exports to three ports: Baniyas in
Syria, Ceyhan in Turkey [on the Mediterranean] and Aqaba in Jordan [on the Red
Sea],” Hasnawi added."
References:
Iraq
announces huge oil find near Saudi border as Hormuz crisis bites. Chaima Chihi.
Euro News. May 8, 2026. Iraq
announces huge oil find near Saudi border as Hormuz crisis bites
New
Oil Discovery at Qurnain Exploration Block. Iraq Business News. New
Oil Discovery at Qurnain Exploration Block | Iraq Business News
Iraq
gives go-ahead for Basra oil pipeline under deal with China. Nadim Kawach.
AGBI. April 27, 2026. Iraq
gives go-ahead for Basra oil pipeline under deal with China
Other
Pipelines and Projects to Bypass Oil From Hormuz. Brian Wang. Next Big Future.
May 5, 2026. Other
Pipelines and Projects to Bypass Oil From Hormuz | NextBigFuture.com
Beyond
Hormuz: The pipeline routes that could reshape Gulf oil flows. Victoria Grabenwöger. Kpler. Beyond
Hormuz: The pipeline routes that could reshape Gulf Beyond Hormuz: The pipeline
routes that could reshape Gulf oil flows | Kpler -
Iraq
accelerates $5 billion Basra-Anbar oil pipeline amid push for new export
routes: Ministry. Rudaw. May 1, 2026. Iraq accelerates
$5 billion Basra-Anbar oil... | Rudaw.net
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