Iraq only Middle East country in major 2026 oil projects

Shafaq News– Baghdad

Iraq is set to bring one of the world’s largest new oil field developments online in 2026, adding fresh crude supply to global markets increasingly driven by production growth outside the OPEC+ alliance, according to data from S&P Global Energy.

S&P Global reported that Iraq was the only Middle Eastern country among eight major oil field projects worldwide scheduled to begin production in 2026. Together, the projects are expected to add more than 450,000 barrels per day to global supply, with the largest new volumes coming from countries outside OPEC+.

Iraq’s project ranks as the third-largest on the list and is operated by China’s EBS.

Production from the shallow-water East Baghdad field is forecast to rise by about 46,500 barrels per day by mid-2026, while output from the light-to-medium crude field is expected to reach around 120,000 barrels per day by 2027 following expansion of its southern section, according to the report.

S&P noted that the projects have already been sanctioned and are under active development, making their contribution to future supply largely independent of short-term oil price movements.

Iraq is OPEC’s second-largest producer, and additional capacity from new projects could add pressure to the group’s efforts to manage supply amid volatile demand and oil prices.

With oil still providing more than 90% of government revenue, Iraq continues to deepen its reliance on crude production. Days earlier, the Iraqi Drilling Company said it drilled and rehabilitated 237 oil wells across the country in 2025, reinforcing Baghdad’s strategy of expanding upstream capacity despite repeated calls for economic diversification.

Read more: Without oil: Iraq's economic future hanging in the balance