Nationwide output fell by about 60,000 bpd, but appears set to rebound as Iraq's most prolific field recovers from a damaging fire.
Southern Iraq's largest state-run field is developing new production capacity and working to capture more associated gas.
Production and expansion work continue at key gas field after yet another attack highlights unresolved Iraqi government security failures.
Production at Iraq's largest field is still down by at least 120,000 bpd as repair crews contend with extensive damage from a Jan. 24 fire.
Parliament passed an amendment to the national budget law designed to pay oil companies in Kurdistan and unlock pipeline exports to Turkey.
Change in operator could spur new activity at the oil field, which has been offline since 2023 after a steady production decline.
Iraq's most prolific oil field temporarily lost about 120,000 bpd of production after 60 wells were taken offline in response to a storage tank fire.
A compromise measure to pay Kurdistan's oil contractors and unlock Iraq's northern oil export route has met major political opposition.
A temporary but dramatic drop in output at Iraq's most prolific oil field underscores the challenges of fighting natural reservoir decline and maintaining production.
Steep reduction at Rumaila brought Iraq's December production average to its lowest level in 18 months as Iraq continues to restrain output in an effort to meet OPEC-plus expectations.
A long-sought deal is getting high-level political attention, and some officials expect to clinch an initial contract in January.
