The Russian oil and gas company Lukoil has submitted a preliminary development proposal for the Eridu oil field, located between the Al-Muthana and Dhi-Qar governorates in the south of Iraq. According to a result of studies presented by the company, oil reserves are estimated at 7-12 Gbl, and the proposed peak production could reach 250,000 bbl/d. The field, discovered in 2017, is part of block 10, which was awarded in 2012 to a consortium of Lukoil and Japan's Inpex under the country's fourth licensing round.
In October 2021, Iraq entered into talks with international oil majors including Shell, BP, ExxonMobil, Lukoil and Eni, to help the country doubling its crude production capacity to 8 mb/d by 2027. In addition, Iraq aims to expand its export capacity by 50% to 6 mb/d by the end of 2024 and the country will invest in new infrastructure, such a new offshore pipeline. Iraq bets on an oil trading price ranging between US$75/bbl and US$80/bbl.
Oil production dropped by 12% in 2020, reaching 206 Mt (4.2 mb/d) due to the COVID-19 pandemic. It had been previously increasing rapidly since 2010 (+8%/year) with a major increase in 2016 (+28%) that was mainly due to an increased output at fields in southern Iraq and in the Iraqi Kurdistan Region, which more than offset disrupted volumes in the north.