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Iraq had prepared a sweeping four-part “emergency plan” for a large-scale oil field shutdown in order to deal with the closure of the Strait of Hormuz, according to an internal document obtained by MEED.

The document shows that on 3 March, Abdul Karim, the director general of state-owned Basra Oil Company (BOC), wrote to the Iraqi Oil Ministry’s deputy minister for extraction seeking approval to implement the plan.

In the correspondence, Karim said that the plan was previously “discussed and presented to the leadership of the oil sector”.

He added: “Due to the lack of tanker availability starting tomorrow, export operations from our oil storage facilities will stop.”

The plan consists of four phases, starting with the complete shutdown of nine fields, which was due to be fully implemented on 3 March.

The nine fields due to be closed were:

• West Qurna-1
• Ratawi
• Gharraf
• Majnoon
• Rumaila South
• Luhais
• Tuba
• Subba
• Hadba

The second phase of the plan involves reducing production at Iraq’s Halfaya field by 50%.

The plan aims to temporarily maintain the operation of the natural gas liquids (NGL) plant at the field.

This part of the plan was also scheduled to be fully implemented on 3 March.

The third phase of the plan was focused on the “complete shutdown of field production” at the West Qurna-2 field.

The plan notes that some oil will be retained at the field “to sustain electricity generation”. No date is given for the completion of the third phase of the plan.

The fourth phase of the plan involves reducing production at the Faihaa field by 50%.

The plan notes that sufficient production will be maintained to sustain the central processing facility (CPF) gas project at the site.

The fourth phase of the plan was scheduled to be fully implemented on 4 March 2026.

The correspondence also noted that “in the event that heavy crude exports completely stop, Maysan fields will be fully shut down”.

Karim also said that, at the time, the current oil storage capacity was 6,350 thousand barrels, with a total available space of 3,700 thousand barrels.

Of the 3,700 thousand nameplate capacity available, 1,300 thousand barrels of spare capacity in Tuba could not be utilised because it could collapse the receiving jetties inside the facility.

He also pointed out that the production cuts did not include the North Rumaila field and the Zubair field in order to maintain gas processing rates.

Iraq’s oil and gas sector is facing mounting challenges amid the US and Israel’s ongoing war with Iran.

In the south of the country, oil exports have been paralysed by the closure of the Strait of Hormuz, and, in the country’s northern region of Iraqi Kurdistan, exports via the Iraq-Turkiye Pipeline have fallen to zero.

On 2 March, Iran’s Revolutionary Guard Corps said the Strait of Hormuz is closed and warned that any vessel attempting to pass through will be attacked.

With inputs from Indrajit Sen

READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes: