The Prime Minister’s advisor sets a date for the recovery of Iraqi oil.

The financial advisor to the Iraqi Prime Minister, Mazhar Muhammad Salih, stated on Wednesday that the return of Iraqi oil production and exports through the Strait of Hormuz to pre-war levels depends on the implementation of a package of technical and logistical requirements, foremost among them being the clearing of the vital waterway from sea mines.

Saleh told Al-Maalomah that “the Iraqi oil fields that were damaged as a result of the forced shutdown that exceeded three months need a period of time of about a month to be restarted,” noting that “this step remains conditional on the return of the international companies that left the fields during the military operations.”

He added that “the second challenge is securing the arrival of oil tankers to Iraqi ports,” noting that this “is entirely dependent on the timeframe required to clear the Strait of Hormuz of mines to ensure the safety of maritime navigation and its return to its former state.”

Saleh added that “the oil sector requires a complete rehabilitation of the infrastructure, pipeline networks, and ports to be fully prepared before the actual start of crude oil pumping operations.”

He pointed out that “70 percent of Iraqi oil exports are allocated to East Asian markets,” stressing that “official contracts are still in place and valid.”

Saleh concluded his remarks by stressing that “the restoration of the Iraqi oil sector to its full production and export capacity will not happen suddenly, but will be subject to a gradual and well-thought-out timetable until the stage of full recovery is reached and cash flows for the country are secured.”

Iraqi oil exports have shrunk by 90% following recent regional events and the Israeli-American war on Iran. This challenge has revealed a clear governmental failure due to the lack of alternatives and the failure to provide any other outlet for exporting Iraqi oil, on which the state relies as its primary source of revenue to fund its budget and public expenditures.

Almaalomah.me