Salim Al-Rikabi, spokesman for the Iraqi Oil Ministry, said, “Exploration and evaluation work in the Al-Qarnayn area has achieved a high completion rate within the obligations required for the first exploration phase.”

A 2D seismic survey has been completed in Al-Qarnain discovery, while processing and interpretation of both existing and newly acquired data are currently underway following the seismic survey to prepare for subsequent phases.

Appraisal Operations and Block Characteristics

The ministry plans to drill two additional appraisal wells to further assess reservoir characteristics and production potential. According to Al-Rikabi, the initial exploratory well resulted in confirmation of a promising presence of light crude, launching the formal evaluation program for the project.

The project is expected to contribute to Iraq’s light crude reserves, support future production growth, and improve the utilization of associated gas. The Al-Qarnain discovery was made in May 2026 by China-based Zhenhua Oil under Iraq’s fifth supplementary and sixth licensing rounds. Spanning 8,773 square kilometers in southwestern Iraq along the border with Saudi Arabia, the Al-Qarnain block is regarded as a prospective area for energy exploration.

Production Figures and Crude Exports Infrastructure

Iraq’s crude oil production currently stands at 2.75 million barrels per day (mmbbl/d), according to Oil Minister Basim Mohammed Khudair Al-Abadi during an August 8 press conference. However, export disruptions associated with ongoing conflict and the closure of the Strait of Hormuz have reduced crude exports to approximately 1.75 mmbbl/d this month.

To address logistical disruptions impacting crude exports, Baghdad signed a one-year temporary agreement with Türkiye to transport up to 750,000 barrels per day (bbl/d) from the Kirkuk fields through Türkiye’s Ceyhan port. This arrangement includes potential expansion to 1.5 million barrels under a new agreement expected to be signed in 2026. Concurrently, Iraq is increasing crude shipments by tanker from Basra alongside volumes transported north from southern fields through the strategic pipeline.

Lebanese Officials Assess Readiness for Storage and Transit Operations

Under initial plans, Lebanon will operate as a dedicated storage and re-export center for incoming shipments of crude and petroleum products. Officials reviewed the operational readiness of multiple state bodies. The meeting assembled Lebanon’s Energy and Water Minister Joe Saddi, Interior and Municipalities Minister Ahmad al-Hajjar, Public Works and Transport Minister Fayez Rasamny, alongside representatives from Customs and General Security.

Infrastructure Upgrades and Operational Protocols

Inter-ministerial preparations encompass several technical and logistical steps. Work includes upgrading road infrastructure to accommodate heavy tanker movement, expanding border crossing capacities, and structuring secure transport routes leading to storage facilities. Officials also addressed safety requirements, operating protocols, and storage capacities ahead of the expected deliveries. Participating ministries agreed to maintain close coordination to ensure all remaining tasks meet established deadlines.

Historical Background of the Transit Corridor

The Kirkuk-Tripoli pipeline talks align with recent field inspections conducted by Lebanon’s energy minister at site facilities. These inspections support long-term framework plans aimed at attracting international investment to rehabilitate the Kirkuk-Tripoli pipeline. Originally constructed and commissioned between 1932 and 1934, the transit route formed an essential segment of an early network delivering Iraqi crude across Syria to Lebanon’s Mediterranean port. Subsequently, a refinery was constructed in Tripoli in 1940 to process incoming supply, operating in parallel with other regional terminals servicing Mediterranean markets. Future steps aim to restore structural viability to facilities connected to the Tripoli refinery.

Iraq Expands Regional Pipeline Infrastructure

Simultaneously, Iraq has initiated construction on the new Basra-Haditha pipeline. Designed with a capacity of up to 2.5 million barrels per day, this conduit features planned connection points extending toward Syria’s Baniyas port, Türkiye’s Ceyhan terminal, and Jordan’s Aqaba port. This project reflects Baghdad’s broader strategy to expand its export routes. By establishing alternative export routes, Iraq aims to reduce reliance on the Strait of Hormuz following the near-total disruption of oil shipments through the waterway since late February. 2026

Sustaining Transport Operations and Strategic Outlets

The newly finalized one-year pipeline deal replaces the previous bilateral agreement that expired on 26th July 2026. Official negotiations between Baghdad and Ankara successfully concluded with a mutual commitment to maintain operational continuity. Minister Khudair stated that the signed Iraqi oil exports agreement serves as a core pillar in securing strategic export channels and reinforcing Iraq’s national petroleum sector.

The one-year pipeline deal sets current capacity limits at 750,000 barrels per day. Over the course of the next year, both sides aim to draft a updated comprehensive framework agreement. Updating the original 1973 treaty is expected to help elevate Iraqi oil exports toward a target volume of 1.5 million barrels per day. In addition to transport via the Ceyhan pipeline, discussions extended to investment opportunities in Iraqi oilfields and potential joint ventures between Iraqi and Turkish energy entities across upstream and downstream segments.

Regional Coordination and Energy Security

Turkish Energy Minister Alparslan Bayraktar characterized the talks with the Iraqi delegation as productive. The formal agreement was executed between Botas and Iraq’s state entities, including the its oil marketing company (SOMO) and North Oil Company, to maximize utilization of the dual-nation pipeline network. Bayraktar underscored that maintaining steady crude oil transit through the corridor is increasingly vital for regional and global energy supply security.

Long-Term Infrastructure Objectives

The pipeline has provided a central transit corridor connecting both countries for nearly five decades. While work continues on a long-term framework, the current energy agreement guarantees the ongoing flow of crude to international markets via Ceyhan. Türkiye reaffirmed that the primary goal remains full utilization of the infrastructure to support long-term cooperation, safely delivering energy resources while stabilizing the global energy supply through reliable crude oil transit and sustained Iraqi oil exports under the broader Iraqi oil exports agreement framework.

According to a statement issued by the Oil Ministry, Khudair held talks with Chevron’s head of corporate business development, Jake Spiering, on opportunities for cooperation between the ministry and the U.S.-based company. The meeting also examined approaches to broaden collaboration in developing Iraq’s oil and gas sectors while supporting future oil production objectives. Khudair highlighted the ministry’s determination to work closely with leading international companies in pursuit of shared goals and the implementation of major projects across Iraq’s oil and gas industry.

Chevron representatives, in turn, expressed their interest in strengthening cooperation with Iraq and evaluating potential investment opportunities in the oil and gas sectors, reaffirming the company’s intention to expand its activities within the Iraqi market.

Existing Agreements and Future Contract Discussions

Earlier in July 2026, the Iraqi cabinet approved the state-owned Basra Oil Company (BOC) to sign a preliminary agreement and non-disclosure agreement with a consortium comprising US-based Capital TI and Chevron, together with Qatar’s UCC, for the construction of strategic oil pipelines. According to the Prime Minister’s Office (PMO), the consortium will conduct technical and financial feasibility studies comparing the Basra-Haditha-Kirkuk-Ceyhan and Basra-Haditha-Baniyas routes.

The discussions build on agreements signed by the Iraqi Oil Ministry and Chevron in February 2026 to oversee and develop major hydrocarbon resources in the country. Under the first agreement, Chevron acquired Russia-based Lukoil’s share in Iraq’s West Qurna-2 oil field, one of the largest oil resources in Iraq and globally. A second agreement was signed between Chevron, Iraq’s Dhi Qar Oil Company, and North Oil Company (NOC) to develop the Nasiriyah oil field, four exploration blocks in the southern Iraqi province of Dhi Qar, and the Balad oil field in Salah al-Din province, supporting future oil production efforts.

The negotiations between Chevron and the Iraqi Oil Ministry are intended to improve the terms of the contract, with discussions focusing on profit margins, revenue-sharing arrangements, capital spending caps, and greater operational flexibility. Chevron reiterated its commitment to expanding long-term partnerships with the Iraqi government to effectively develop oilfields across the country.

The meeting was chaired by the newly appointed Deputy Minister of Oil for Upstream Affairs, Naseer Aziz, who welcomed the Managing Director of TotalEnergies in Iraq, Donia Chalabi, to the ministry’s headquarters in Baghdad. Also participating in the session was the Director General of the state-run Basra Oil Company, Basim Abdul Karim, reflecting continued collaboration between federal decision-makers and regional operational teams.

During the meeting, Chalabi presented a detailed engineering and logistical overview covering the project’s operational framework, execution schedule for each development phase, and the completion status recorded across the initial development blocks.

Project Supports Gas Processing and National Energy Objectives

The Artawi gas project represents an important component of Iraq’s broader industrial strategy by focusing on the capture and processing of associated petroleum gas that has traditionally been lost through atmospheric flaring. Rather than allowing these hydrocarbons to be wasted, the initiative is designed to channel them into high-efficiency processing facilities. Through this approach, the project seeks to reduce greenhouse gas emissions while increasing domestic fuel production to support the country’s national electrical grid.

In addition, the continued expansion of the Artawi gas complex is aligned with the government’s long-term sustainable development objectives and clean energy transition plans. Officials believe that the application of TotalEnergies’ specialized global technical expertise will help expand Iraq’s national gas processing capacity, supporting efforts to lessen the country’s dependence on regional energy imports.

As discussions concluded, the Ministry of Oil reiterated its commitment to providing full administrative and security support to keep the Artawi gas project on schedule and ensure it reaches full operational readiness. The ministry also emphasized that timely completion of the project is expected to contribute to domestic economic growth while strengthening the value generated from the country’s upstream sovereign wealth.

Feasibility Studies for Pipeline Expansion

Under these pipeline feasibility study agreements, the consortium is tasked with performing technical and financial feasibility assessments for potential pipeline infrastructure routes. The primary objective is to enhance the national capacity for crude oil export. The proposed corridors currently under review include a connection from Basra to Turkey’s port of Ceyhan, traversing Haditha and Kirkuk, as well as a route linking Basra to the Syrian port of Baniyas via Haditha.

Consultancy and Infrastructure Development

The Cabinet emphasized that these initial pipeline feasibility study agreements do not create immediate financial or contractual obligations for the Ministry of Oil. In a related development, the Basra Oil Company has been granted authorization to secure consultancy services from the American firm KBR. This partnership is intended to support the technical development of the Basra–Haditha pipeline, which remains a central component of Iraq’s pipeline infrastructure modernization.

Broader Energy Sector Goals

These initiatives are part of a wider strategy within the Iraqi oil industry to diversify options for moving product to market. By expanding the reach of strategic oil export networks, the country aims to strengthen its internal energy framework and reduce a heavy reliance on existing southern export terminals. This infrastructure push follows recent efforts to increase national reserves, including the launch of exploratory drilling in northern provinces in early 2026, marking the first such activity in that region since 1978.

Iraq’s Oil Ministry spokesman Salim al-Rikabi said, “Iraq is exploring alternative routes to its existing maritime outlets.”

He also provided an update on the project’s status, stating, “The project to extend an Iraqi oil export pipeline via the port of Banias in Syrian territory is still under study.”

Al-Rikabi noted that progress on the proposed oil pipeline is connected to another key infrastructure project that must be completed beforehand. He explained that the Basra-Haditha pipeline requires an extension to enable the movement of crude oil to Haditha before further stages of development can proceed.

“Afterward, planning will begin for an alternative pipeline to the Turkish side,” he said.

Feasibility Studies and Infrastructure Requirements

The ministry said that both technical and economic reviews are still in progress as officials continue to determine the practicality and benefits of the project. Providing further details on the proposed oil pipeline, Al-Rikabi stated, “The project’s feasibility study is ongoing, and once the pipeline is completed, it will replace the tankers currently transporting oil through Syrian territory.”

According to Al-Rikabi, the development could provide Iraq with increased operational flexibility if it moves forward. The country is evaluating additional export corridors alongside its current Gulf export routes and the Turkish port of Ceyhan, with the aim of strengthening the resilience and adaptability of its export system. Within this broader framework, the oil pipeline is being considered as a potential option to expand crude transportation capacity.

Diplomatic Engagement and Export Strategy

The proposed project has also been part of recent regional discussions. During a visit to Damascus on Monday, Iraq’s Foreign Minister Fuad Hussein confirmed that he had discussed with Syrian President Ahmed al-Sharaa a project to extend an Iraqi oil pipeline sponsored by a foreign company that would pass through Syrian territory.

At present, Iraq exports more than 200,000 barrels per day (bpd) of crude through the northern Kirkuk-Ceyhan pipeline. However, the agreement covering that route is scheduled to expire on 27 July after Turkey decided last year to end the existing pact. Iraqi officials said last week that talks between Baghdad and Ankara are expected to be held in an effort to reach a new arrangement and maintain uninterrupted export flows.

The agreement was concluded shortly after Al-Abadi assumed office as Iraq’s new oil minister, reflecting the government’s ongoing strategy to attract major international energy companies and expand commercial engagement with the United States. During discussions surrounding the agreement, Oil Minister Al-Abadi described West Qurna 2 as one of Iraq’s major oil resources and emphasized the government’s commitment to providing a secure and attractive investment climate for international firms, including Chevron.

Iraq Seeks Greater Foreign Investment in Energy Sector

According to the Oil Minister, Iraq continues to offer substantial investment opportunities for global energy companies while working to remove obstacles that could hinder foreign investment and delay the launch of new projects. The latest agreement forms part of broader efforts to encourage international participation in the country’s energy sector and support future development initiatives at West Qurna 2.

The Chevron agreement follows another significant arrangement recently reached with U.S. engineering firm KBR, highlighting growing momentum in Iraq-U.S. energy cooperation. Baghdad has been seeking increased American participation across its oil, gas, and infrastructure industries as part of wider economic development plans.

Strategic Importance of West Qurna 2

The West Qurna 2 field remains one of Iraq’s most important oil assets. The field was previously developed by Russia’s Lukoil, which later exited its operations there, creating an opening for new foreign investment opportunities.

Chevron’s potential entry into the project would rank among the most notable recent American energy investments under Iraq’s new government and could contribute to stronger economic links between Baghdad and Washington.

The agreement also aligns with broader efforts by Iraq and the United States to expand their relationship beyond security matters. Recent discussions between officials from both countries have increasingly focused on investment, energy development, and cooperation involving the private sector, underscoring a shared interest in deepening business and economic ties.

The update was issued following a technical site visit led by the Deputy Minister of Oil for Gas Affairs, Ezzat Saber Ismail. During the inspection, the deputy minister toured ongoing construction areas within the Artawi oil field located in Basra Governorate. The visit focused on evaluating progress across several core facilities being developed as part of the Artawi project, particularly infrastructure intended to eliminate gas flaring and improve gas recovery operations.

• Among the facilities reviewed was the AG25 Accelerated Gas Project, a fast-track recovery system designed to capture surface-level associated gas and channel it directly to the power grid.
• Ismail also examined progress at the GMP (Gas Management Plant), which will serve as the main processing installation responsible for treating and refining raw, sour gas into clean fuel.
• In addition, attention was given to the Sourcing Network, through which the planned 300 mmscf/d feedstock supply will be collected from the Artawi, West Qurna 2, and Majnoon oil fields.

The inspection was attended by the Director-General of South Gas Company (SGC), Ali Salman Majid, Artawi Project Director Abdul Rahman Hilal, and the Assistant Director-General of Basra Oil Company (BOC), Basim Al-Ghalibi.

Ministry Reaffirms Commitment to Project Delivery

During an executive technical briefing held at the site, Ismail underlined the strategic significance of completing the Artawi project as part of Iraq’s wider energy and environmental objectives.

Addressing officials and project teams, Ismail said, “The Artawi venture is not just an industrial upgrade; it is a strategic transition to secure domestic energy security. By capturing 300 mmscf/d of associated gas, we will directly power local electrical grids, slash expensive fuel import bills, dramatically reduce toxic carbon emissions, and generate massive long-term economic returns for the treasury.”

The deputy minister also instructed technical teams to remain aligned with approved engineering schedules and implementation targets. He stressed the importance of maintaining construction progress and confirmed that the Ministry of Oil would continue providing the financial and logistical support required to overcome procedural obstacles.

Government Reaffirms Commitment to OPEC Production Levels

Ministry spokesperson Salim al-Rikabi officially dismissed recent reports suggesting that the government had considered withdrawing from the organization. He clarified that Iraq remains fully committed to the group’s framework while simultaneously advocating for a review of OPEC production levels. The government is seeking a reassessment that accurately reflects the specific economic and security circumstances of its member states.

In response to these requests, the organization has initiated a comprehensive assessment of the sustainable crude oil output capacity of its members. This technical evaluation is being conducted in collaboration with an independent international consulting firm. Al-Rikabi confirmed that the Iraq is actively participating in this process, adhering to the established professional timetable to ensure fair representation within the global energy market.

Technical Evaluations and Petroleum Export Capacity

The ministry emphasized that future discussions regarding output ceilings will remain grounded in technical consensus. The gradual restoration of Iraq oil production quota is expected to provide the necessary support for the country to reach its target production levels. Al-Rikabi noted that the organization has acknowledged the exceptional challenges Iraq has faced over the last forty years, including infrastructure damage resulting from security conflicts and external attacks.

These considerations are central to the country’s efforts to reclaim its status as the second-largest producer within OPEC. Strengthening the oil industry remains a priority for Iraq, as the sector serves as the primary revenue source for national development. While the current quota for July 2026 is set at 4.378 million barrels per day, actual crude oil output has recently been impacted by logistical disruptions related to the Strait of Hormuz crisis.