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Iraq has urged the Oil Producing Exporting Countries (OPEC) to increase its oil production quota considering the country’s history of conflicts and the recent regional war that have damaged its industry, the oil ministry said today.
Like other oil producers, Iraq, a founding member of OPEC, was greatly affected by the Middle East war, as it is hugely dependent on oil exports, which make up about 90 percent of its budget revenues, reports AFP.
Iraq’s oil ministry said that the country “has consistently emphasised the importance of reassessing production baselines to ensure they are aligned with the sustainable production capacities of member countries,” and in respect of “Iraq’s unique security and economic circumstances”.
OPEC has “responded by launching a process to reassess” its member states’ capacities, the ministry said.
Amid reports of a possible Iraqi exit from OPEC, oil ministry spokesperson Salim al-Rikabi told our correspondent that Iraq “has no intention of withdrawing from the organisation and remains committed to its mechanisms”.
He added that the cartel “has to raise Iraq’s production quota. Otherwise, a decision will have to be made about whether to stay or leave the organisation”.
Iraq has proceeded “to increase its production in line with its capacities and needs,” he said.
But the ministry said that “reports suggesting that Iraq is considering ending its membership in OPEC do not reflect the official position” of the government.
An Iraqi exit would further weaken OPEC after the UAE pulled out of the cartel in May citing “national interests” and a broader plan to future-proof its economy.
Iraq’s ministry added that “any issues related to production baselines or sustainable production capacity are addressed through the established technical and consensus-based mechanisms” within OPEC.
It noted a “high level of understanding” among OPEC members regarding Iraq’s situation, given decades of wars, sanctions, and recent attacks that have damaged the sector during the Middle East war.
All of these challenges will be considered to “ensure that Iraqi oil production reaches a fair level”.
The Middle East war and Iran’s blockade of the Strait of Hormuz choked off shipments and prompted production cuts in key oil-producing countries including Iraq, shaking world energy markets.
During the conflict, several oil fields were struck by drones mostly launched by pro-Iran armed groups.
Before the war erupted on February 28, Iraq produced around four million barrels per day, and exported an average of 3.5 million bpd, mostly via Hormuz.
After a recent deal between Washington and Tehran to end the fighting, Iraq now hopes to return within two months to its previous production levels.
