JP Morgan: Iraq’s oil production recovery process requires careful technical management.
JPMorgan Chase confirmed on Thursday that most of the oil fields in the region could be restarted within a few days, with the possibility of restoring full production capacity within two to three weeks, provided that security conditions stabilize and logistical services are available.
Regarding Iraq, the bank noted that Iraqi fields have clear operational flexibility, but the process of restoring production requires careful technical management, as reservoir pressure must be rebuilt gradually and in a controlled manner, given that a number of giant fields rely on water injection systems as a key pillar for maintaining pressure balance and sustaining extraction rates.
The report explained that the main constraint at the moment is not related to the nature of the reservoirs or the existence of permanent geological damage, but rather to the logistical challenges related to the movement of equipment, the availability of technical personnel, and the stability of storage and export operations.
This assessment is of particular importance to Iraq, which relies heavily on oil revenues to finance its general budget, making the speed of restarting the fields a crucial factor in reducing revenue losses and maintaining financial stability, especially in light of the current regional volatility.
Shafaq.com