Basra Governorate
Southern oil gateway producing majority of Iraq's petroleum exports while residents experience chronic infrastructure failures and water crises.
Basra is Iraq's economic oxygen—the southern gateway where petroleum wealth enters the national economy and the port through which 90% of crude exports depart. Most of Iraq's proven 145 billion barrel reserves lie in the Basra region, making this governorate the substrate upon which the entire federal budget depends. In 2024, Iraq ranked as OPEC's second-largest producer after Saudi Arabia, with Basra fields providing the overwhelming majority of that output.
The concentration creates both wealth and paradox. Basra generates petroleum revenues that fund government salaries nationwide, yet its own residents face chronic electricity shortages, water quality crises, and infrastructure decay that triggered mass protests in 2018. A $200 million World Bank project now works to improve electrical reliability—addressing failures in the governorate that powers the nation.
Major investments continue flowing into Basra's hydrocarbon infrastructure. TotalEnergies and QatarEnergy signed a Gas Growth Integrated Project agreement for the Artawi field in September 2025. A floating LNG platform contracted with Excelerate Energy will create Iraq's first LNG export capability. New compressors installed in mid-2024 boosted export capacity by 300,000 barrels per day.
Yet oil dominance prevents diversification. With 89% of foreign exchange earnings from petroleum, Basra's fortunes remain tied to global commodity prices and OPEC production quotas. By 2026, expect continued hydrocarbon investment, modest progress on electricity and water infrastructure, and persistent tension between resource extraction wealth and local service delivery failures.