Iraq has the fifth largest proven oil reserves in the world, estimated at 145 billion barrels, representing about 17% of total Middle Eastern reserves and around 9% of global reserves, according to the US Energy Information Administration (EIA).
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.
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The discovery is considered one of the most important in the Iraqi energy sector in recent years, as initial estimates indicate that one of the exploration patches contains reserves exceeding 8.8 billion barrels of crude oil.
The Qurnain block is located in southwestern Iraq in Najaf province, about 180 kilometres from Baghdad, along the Iraqi-Saudi border. It is one of the most promising areas for oil exploration, covering an area of 8,773 square kilometres. The contract to develop, explore and produce oil from it was signed on 17 October 2024.
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 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.
A Chinese bet on the Iraqi desert
The Chinese company has submitted a rapid investment plan aimed at accelerating the development of the field and moving it to commercial production as soon as possible, the oil ministry said.
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.
Meanwhile, Iraq is facing pressure on its oil exports as a result of the war in the Middle East and disruptions in the Strait of Hormuz, a vital corridor for Iraqi energy shipments to global markets.
Before the escalation of regional tensions, Iraq produced about 4.5 million barrels of oil per day, making it the third largest producer in the Organisation of Petroleum Exporting Countries (OPEC), and exported about 3.5 million barrels per day, around 90 per cent of which passed through the Strait of Hormuz.
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).
