Iraq's Kurdistan Oil Production Recovers to 230,000 Barrels per Day

Market News · samer saeed · August 30, 2026

Iraq's Kurdistan Oil Production Recovers to 230,000 Barrels per Day

The region's production had sharply declined since the outbreak of the regional war in late February, with oil facilities being attacked and international companies suspending or reducing their operations as a precautionary measure.

Among the companies that halted or paused operations for varying periods were Dana Gas, Gulf Keystone Petroleum, Pearl Petroleum, and Shamaran Petroleum. Meanwhile, the fields of Shikhan and Sarsank experienced a decline of over 50% in production over the past months before operations began to recover.

The closure of the Strait forced Baghdad to reduce production in several fields after reservoirs filled up, while seeking alternative routes that included limited truck shipments through Syria, as well as exports via the pipeline reaching the Turkish port of Giha.

Khadir said that a coalition including Chevron and Qatar's UCC intends to implement a pipeline from Basra to Fashkhabor, alongside a planned line extending from Haditha to the Syrian port of Baniyas.

Baghdad also seeks to increase reliance on the Turkish route, after signing with Ankara on August 1 a deal to extend oil understandings for a year, during which a long‑term framework agreement is being drafted.

According to the oil minister, the plan aims to ensure the sustainability of Kurdistan's crude exports, as well as transporting part of southern Iraq's oil through a pipeline to Turkey, reaching export volumes exceeding 700,000 barrels per day.

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