Iraq on Friday advised international oil companies to curb output at the fields they operate, declaring force majeure because of the disruption to exports from the country's south.
Iraq has effectively lost access to the 3.4mn b/d of export capacity through Basrah as a result of the near-halt of transit through the strait of Hormuz. The oil ministry cited crude oil storage reaching its maximum capacity, which it said required a scaleback of production in the oil fields operated by international companies.
"We will make every effort to resume exports as soon as possible; however, the situation is unpredictable," the oil ministry told the foreign firms.
Invoking force majeure, retroactively to 3 March, allows Baghdad to pause revenue and production sharing contractual arrangements with foreign companies.
Baghdad said it has cut its own crude production to 1.5mn-1.6mn b/d to prioritize domestic refining and electricity generation. Argus estimates production at around 1.2mn b/d.
Iraq resumed crude exports from its northern Kirkuk fields to Turkey's Ceyhan port on 18 March at an initial rate of 250,000 b/d, according to the oil ministry.
International oil companies operating in Iraq's Kurdistan region have already halted production, following repeated missile and drone attacks on energy infrastructure carried out by Iran-aligned Iraqi militia groups after the US and Israel attacked Iran on 28 February.
