Iraq plans to raise oil production capacity above 6 million bpd by 2029

Two oil tanks can be seen in this photo. Reuters

Iraq plans to raise oil production capacity to more than 6 million barrels per day (bpd) by 2029, the state news agency reported Iraq's oil ministry as saying on Sunday.

Oil ministry undersecretary Bassem Mohamed Khodeir told the agency that Iraq aims to achieve its target through oil exploration and nationwide drilling activity, pointing to a recent deal with oil major BP to redevelop four Kirkuk oil and gas fields.

Iraq's current oil output stands at about 4 million bpd, oil ministry officials say.

It is the second-largest producer within the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and allies including Russia and last month reaffirmed commitment to the group's output agreement. Iraq also said it would present an updated plan to compensate for any previous overproduction.

OPEC+ is cutting output by 5.85 million (bpd), equating to about 5.7% of global supply, in a series of steps agreed since 2022 and is set to begin scheduled supply increases in April.