Iraqi Oil: OPEC responded to the review of production ceilings
The Iraqi Oil Ministry confirmed on Thursday that what was raised regarding Iraq’s threat to end its membership in the “OPEC” organization does not reflect the official position of the Iraqi government, noting that the organization and its allied countries responded to Baghdad’s approach regarding reassessing production ceilings in line with the sustainable production capacities of member states.
The ministry said in a statement, received by Shafaq News Agency, that the Prime Minister and the Iraqi government did not raise the issue of withdrawing from OPEC, but rather stressed the importance of continuously reassessing production ceilings in accordance with the sustainable production capacities of member states, and in line with agreements and understandings related to the security and economic situation of Iraq.
She added that OPEC and allied countries responded to this trend by launching a process to reassess the maximum sustainable production capacity of member countries, which is currently being implemented in coordination with an independent international consulting firm and with the active participation of Iraq, according to the approved timetable.
The ministry explained that OPEC+ countries have already begun gradually restoring the reduced quantities, and the return of all voluntary reductions is scheduled to be completed during the next few months, which will contribute to strengthening Iraq’s production ceiling.
She stressed that demands related to production ceilings or production capacity levels are addressed through the technical and consensus mechanisms adopted within the framework of OPEC and its allied countries.
The ministry noted that there is a high level of understanding among member states regarding the unique situation in Iraq and what the oil industry has been exposed to during more than four decades of wars, embargoes and challenges, as well as the damage inflicted on the oil infrastructure as a result of terrorist attacks, stressing that this is taken into consideration in a way that ensures that Iraqi oil production reaches a fair level that enables it to regain its position as the second largest producer in the organization and achieve the goals of oil sector development projects.
Oil Ministry spokesman Salim al-Rikabi had hinted, in a comment seen by Shafaq News, at the possibility of withdrawing from OPEC if the production level allocated to Iraq is not increased in line with its production capabilities and future needs.
Government sources told Shafaq News on Wednesday that Iraq is considering options to increase its oil exports and review the production ceilings adopted within OPEC, as part of its efforts to enhance its production and export capacity in the coming period.
Shafaq.com