Baghdad, May 6-7, 2026 — Iraq’s Ministry of Oil has officially announced the discovery of one of the largest oil fields of the past decade in the southern province of Najaf. Preliminary estimates suggest reserves exceed 8.8 billion barrels of crude oil.
Key details of the discovery
The field is located within the Qurnain (Al-Qurnain) block in southwestern Iraq’s Najaf province, approximately 180 km from Baghdad along the Iraq-Saudi border. Covering an area of 8,773 km², the block represents one of the region's most promising exploration zones. The site produces high-quality light crude oil. The initial exploration well, Shams-11, has demonstrated a production capacity of 3,248 barrels per day.
The exploration contract was signed on October 17, 2024. Chinese firm ZhenHua Oil serves as the operator for exploratory drilling and seismic surveys, with its subsidiary Qurnain Petroleum Limited conducting operations in partnership with Iraqi authorities.
Chinese investor to accelerate development
The announcement followed a meeting between Iraq’s Oil Minister Hayan Abdul Ghani and representatives from ZhenHua Oil. The Chinese company presented an accelerated investment plan designed to fast-track field development and transition to commercial production as soon as possible.
Context: Iraq’s energy crisis
The discovery comes amid a severe crisis affecting Iraqi oil exports. Iraq holds the world’s fifth-largest proven oil reserves, totaling 145 billion barrels, which accounts for 17% of Middle Eastern reserves and 8% of the global total.
Prior to the escalation of conflict in the Middle East, Iraq produced approximately 4.5 million barrels per day, ranking as OPEC’s second-largest producer. Exports averaged around 3.5 million barrels per day, with 90% of that volume traditionally passing through the Strait of Hormuz.
In March 2026, monthly exports plummeted to 18.6 million barrels, driving revenues down to $1.96 billion—an 81% drop compared to February 2026, when Iraq exported 99 million barrels and earned $6.81 billion. By April 2026, exports through the Strait of Hormuz hit a low of just 10 million barrels, nearly nine times less than the normal monthly average of 93 million barrels.
This collapse in exports is attributed to the regional conflict and disruptions at the Strait of Hormuz, a critical artery for Iraqi energy supplies reaching global markets. Iran has effectively blocked the strait following strikes by the United States and Israel.
Baghdad’s strategic response
Iraq is working to accelerate the construction of the Basra-Haditha pipeline—running to the Anbar province near the Syrian border—with a projected export capacity of 2.5 million barrels per day. The project aims to diversify export routes and reduce the country’s reliance on the Strait of Hormuz.
Significance of the discovery
This discovery is regarded as one of the most significant developments in the Iraqi energy sector in recent years. The Qurnain block field could serve as a strategic asset, partially offsetting losses from the export slump via the Strait of Hormuz and bolstering Iraq’s energy security amid regional instability.
China’s involvement in the project strengthens economic ties between Beijing and Baghdad while securing Chinese access to new volumes of high-quality light crude, which remains in high demand globally.
