BOC moves to restore output as Iraq tests Hormuz alternatives

Iraq’s state‑owned Basra Oil Co. (BOC) has moved to restore output from three of the country’s largest oilfields, signalling a renewed push to utilise available production and export capacity despite continuing regional security concerns.

An official directive signed by BOC Operations Director Imad Hassan Lafta instructs operators at North Rumaila, West Qurna 1 and Artawi, together with the Tuba field under the South Basra Integrated Division, to resume production and pumping to company storage at normal levels. According to a report published by Iraq’s Shafaq News Agency, operations returned to regular capacity on July 3, in line with BOC’s established production plans and operational requirements.

Shafaq linked the decision to a cautiously more positive assessment of physical risk in key maritime corridors. “The move comes as optimism grows over improving stability in energy supply chains through the Strait of Hormuz and the Gulf region, amid diplomatic efforts aimed at easing regional tensions and safeguarding international shipping routes,” the outlet reports, capturing Baghdad’s attempt to balance immediate export needs against still‑elevated geopolitical uncertainties.

Even as BOC ramps up core southern production, policymakers in Baghdad are working on contingency measures to reduce dependence on the Strait of Hormuz. Iraq currently ships most of its crude through Basra’s southern terminals, but recent maritime tensions have prompted renewed interest in alternative routes and modes. Against this backdrop, officials are examining a new land corridor via Syria to diversify export channels and mitigate exposure to chokepoint disruption.

The scale of disruption is material for Iraq’s fiscal position. Iraqi oil expert Asim Jihad told Turkey’s Anadolu Agency that suspended shipments through the Strait are costing the country about 3.5 million barrels per day in lost exports. He said the Oil Ministry’s main near‑term mitigation effort is to increase flows via the port of Ceyhan from 150,000-200,000 barrels per day to around 300,000 barrels.

In parallel, the ministry is preparing to move some 50,000 barrels per day of Basra crude by tanker truck to Syria’s Banyas port, both to reach global markets and to offload heavy crude that is causing operational bottlenecks in domestic refineries.

Jihad cautioned that revenues from these alternative shipments will be modest but argued that Baghdad sees them as a necessary instrument to ease economic pressure and help narrow budget gaps. Longer term, he said, “constructing new pipelines would be the ultimate and only sustainable option,” noting that the existing Iraq-Syria pipeline is currently unsuitable for export use.