The Iraqi oil ministry denied “baseless” reports that Iraq will seek an exemption from the production cuts agreed on under the declaration of cooperation for countries participating in the Organization of the Petroleum Exporting Countries (OPEC) agreement, the ministry said in a statement on Thursday.
“The Ministry of Oil would like to categorically deny this baseless statement, and affirm that, to the contrary, Iraq remains fully committed to the April OPEC+ Declaration of Cooperation, and the compensation mechanism agreed to in June,” the spokesman said in the statement.
Last month, Iraq promised to slash its oil production by an additional 400,000 barrels per day (bpd) in both August and September to offset its overproduction over the previous three months.
The OPEC and allies, a grouping known as OPEC+, is currently cutting output by 7.7 million bpd up to December to support prices, as the coronavirus crisis continues to hamper demand.
The ministry briefed that Iraq’s commitment to the agreement exceeded 100% in August but it vowed to compensate for the previous production surplus, which amounted to 850,000 bpd, in line with the OPEC+ agreement.
The ministry spokesman, however, said if the compensation for surplus production is not fully carried out by the end of September, Iraq would request that OPEC’s Joint Ministerial Monitoring Committee reach an urgent decision to extend the compensation period until the end of November, immediately after the committee meeting on Sept. 17.
By Sibel Morrow