Iraq announces 8.8 billion-barrel supergiant oil discovery in Najaf

ERBIL, Kurdistan Region - A new supergiant oilfield has been discovered in Iraq’s southern Najaf province near the border with Saudi Arabia, Baghdad’s oil ministry reported on Wednesday, noting that one of its blocks is estimated to contain more than 8.8 billion barrels of reserves.

“The al-Qarnain block is the first exploration block in which an oil discovery has been recorded,” the ministry said in a statement, adding that it is “located in southwestern Iraq within the administrative boundaries of Najaf province along the Iraq-Saudi border and is considered a promising exploration area covering 8,773 square kilometers.”

The ministry further explained that drilling of the exploratory well Shams-11 in the al-Qarnain block indicated “estimated reserves of 8.8351 billion barrels of oil… with a daily production rate of 3,248 barrels of light crude oil.”

The announcement came during a high-level meeting between Iraqi Oil Minister Hayyan Abdul Ghani and a delegation from China’s state-owned company ZhenHua Oil, where they reviewed the company’s progress in increasing production and applying advanced drilling techniques at the al-Qarnain site.

ZhenHua, through its subsidiary Qurnain Petroleum Limited (QN), recently assumed the role of lead operator to carry out exploratory drilling and seismic surveys in al-Qarnain, culminating in the major discovery at the Shams-11 well.

Following the latest discovery, the Chinese company has proposed a “fast-track” investment strategy aimed at rapidly advancing the block from the exploration phase to full-scale commercial production, according to the oil ministry statement.

Iraq is accelerating a multi-billion dollar oil pipeline project with a capacity of 2.5 million barrels per day (bpd) and a stretching from the southernmost province of Basra to the western province of Anbar near the Syrian border, the federal oil ministry said on Friday.

The discovery comes at a critical time for Iraq, as Baghdad’s oil exports have plunged by 80 percent due to disruptions in the Strait of Hormuz.

The United States and Israel launched a large-scale aerial campaign against Iran in late February, striking more than 17,000 sites over six weeks of hostilities. In response, Iran carried out thousands of drone and missile strikes across the Middle East, targeting alleged US assets - particularly in Gulf Arab states - as well as launching retaliatory attacks against Israel.

The warring sides later agreed to a Pakistan-mediated ceasefire on April 8, halting fighting to allow space for talks. While the first round of discussions concluded without a final agreement on April 11, a second round has yet to take place, as the war has yet to fully conclude.

In parallel with the talks, the US and Iran have engaged in reciprocal maritime restrictions. Washington has, since April 13, enforced a naval blockade on Iranian ports, while Tehran has tightened controls on shipping in the Strait of Hormuz which handles over 25 percent of global seaborne oil trade and around 20 percent of global liquefied natural gas (LNG) shipments.

For Iraq, prior to the six-week war, production stood at around 4.5 million barrels per day, with roughly 3.5 million barrels exported daily. Nearly 90 percent of those exports passed through the Strait of Hormuz.

However, exports fell to 18.6 million barrels in March, generating about $1.96 billion in revenue, compared with more than 99 million barrels and $6.81 billion in February, according to official figures from the oil ministry.