Oil production surge in Iraq

Oil production surge in Iraq

Editorial Staff
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Despite adhering to the OPEC-non OPEC agreement on reducing oil output, Bagdad continues to revive its productive system, and in August reached a daily quota of 3.216 million barrels. According to its Minister for Oil, Jabar al Luaibi, "our country will soon have oil reserves equal to those of Saudi Arabia"

 

In August, Iraq’s oil exports came to almost one hundred million barrels, selling for a total of over 4.6 million dollars. This has been announced by the country’s Oil Ministry, citing preliminary export figures from SOMO, Iraq’s state oil marketing company. This data does not include exports from Kurdish sites or from Kirkuk, which pass through the pipeline from Kirkuk to the Turkish port of Ceyhan. In the month of August, Iraqi exports came to 3.216 million barrels of crude oil per day. Last July, oil exports from sites in central and southern Iraq came to 100 million barrels, registering sales of 4.4 billion dollars. Currently, Iraq is the second largest producer in the OPEC oil exporters organization, after Saudi Arabia. On May 25 this year it agreed to OPEC’s decision to extend the oil output reduction agreement signed in November 2016 up until March 2018. Last December this agreement was extended to include 11 non-OPEC countries, including Russia. The agreement foresees an overall reduction of 1.8 million barrels of crude per day, designed to prop up falling global oil prices. As a result, Iraq has had to cut its output by 210,000 barrels per day. Despite its adhesion to this agreement on production cuts, the Bagdad government is actively working to accelerate the development of its energy sector, in order to boost its capacity for oil production, export and refining. At the beginning of last July, the Iraqi Minister for Oil Jabar al Luaibi declared that Iraq has the right to implement oil production levels in line with the size of its reserves. "In the future, probably, Iraq’s oil reserves will undoubtedly be as large as those of Saudi Arabia. We have gas, we have oil, and we have the right to use them well."