Strait of Hormuz Disruption Forces Iraq to Halt Southern Rumaila Production

Iraq has scaled back operations at its key Rumaila oil field after the effective closure of the Strait of Hormuz disrupted tanker traffic, officials confirmed Tuesday.

An internal document, verified by two oil ministry sources, showed that the field’s operations manager directed a 100 percent reduction in “production and pumping… from” the southern portion of the site starting Tuesday afternoon.

The document cited a “shortage of tankers” at southern export terminals due to the Strait’s closure, warning that oil stockpiles had “reached critical levels.”

According to ministry officials, crude output will instead be channelled to Iraq’s domestic refineries.

Rumaila, developed jointly by BP and the Basra Oil Company, produces nearly one-third of Iraq’s oil supply.

Roughly 25 percent of global seaborne crude shipments transit the Strait of Hormuz. Iran’s Revolutionary Guards declared the strategic waterway closed on Saturday, prompting international shipping companies to suspend voyages.

As a founding member of OPEC, Iraq relies on oil sales for about 90 percent of state revenue and exports approximately 3.5 million barrels daily.

In northern Iraq’s Kurdistan region, oil production has also slowed amid the broader Middle East conflict. A source told AFP that most foreign oil companies have “temporarily” stopped production as a safety precaution.

Kurdistan, home to US-led coalition forces and a major US consulate complex in Erbil, has faced drone attacks since the Israel-US strikes on Iran, though most were intercepted. Oil fields there have been targeted several times in recent years in attacks attributed to Iran-backed groups.

Africans Angle News