The Iraqi Ministry of Oil on Thursday denied any government proposals for the country to leave the Organization of the Petroleum Exporting Countries (OPEC).
In a press statement, the ministry stated that “statements about Iraq’s intention to terminate its membership in OPEC do not reflect the official position of the Iraqi government.” Neither the prime minister nor the Iraqi government has raised the issue of withdrawal.
Iraq has consistently emphasized the importance of reassessing production quotas to align them with the sustainable production capacities of member countries, in accordance with the agreed understanding of the security and economic situation in Iraq.
Review of Production Quotas
OPEC countries and their allies (OPEC+) have initiated a process to reassess the maximum sustainable production capacity of member countries. This process is currently being implemented in coordination with an independent international consulting firm, with Iraq actively participating, according to the approved schedule.
The statement also noted that OPEC countries and their allies have begun gradually restoring the reduced volumes, with all voluntary reductions expected to be completed in the coming months. This will contribute to an increase in Iraq’s production quota.
Any demands regarding production quotas or levels of production capacities are considered through technical and consensus mechanisms adopted within OPEC and its allies.
Iraq’s Position and OPEC Support
The Ministry of Oil emphasized the high level of understanding from OPEC member countries regarding Iraq’s unique situation and the challenges faced by the country’s oil industry over more than 40 years, including wars, blockades, and the recent destruction of a significant portion of its oil and auxiliary infrastructure due to terrorist attacks.
This context will be taken into account to ensure that oil production in Iraq reaches a fair level, allowing it to restore its position as the second-largest producer among OPEC member countries and achieve the desired outcomes from projects aimed at developing and rehabilitating all sectors of the oil industry, which is crucial for Iraq’s financial revenues.
An official representative of the Iraqi Ministry of Oil, Salman Rikaabi, previously stated that there is currently no intention to leave OPEC. Commenting on reports about Iraq’s intention to withdraw from the organization, Rikaabi noted: “We remain committed to working within the mechanisms of the organization, considering that the ministry continues to increase its production in accordance with its capabilities and needs.” He added: “OPEC should increase Iraq’s production level; otherwise, a decision will be made on whether to stay or leave.”
The Director General of the Iraqi Oil Marketing Company (SOMO), Ali Nizar Al-Shatri, last week ruled out any intentions for Iraq to leave OPEC. He stated that such a withdrawal would be illogical and could have serious consequences for price wars, emphasizing that Iraq’s presence in OPEC is necessary to limit price fluctuations.
Al-Shatri emphasized: “Iraq largely adheres to OPEC’s decisions, and today Iraq agrees with all the organization’s decisions to support price levels and achieve balance in the oil market.”
The OPEC organization was founded in Baghdad on September 14, 1964.
Iraq demands compensation for its share of crude oil production in OPEC, especially considering the significant losses the country has suffered due to wars since the 1980s, a comprehensive economic embargo lasting more than 13 years, and the war that led to the overthrow of the late Iraqi President Saddam Hussein in 2003. This has deprived Iraq of the opportunity to strengthen its crude oil production and export capabilities.
Source: Sky News Arabia