Iraq seeks an exemption from the OPEC agreement to reduce oil exports

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Iraqi Oil Minister Ihssan Abdul-Jabbar said that his country is seeking to open a dialogue with the Organization of Petroleum Exporting Countries (OPEC) to exempt Baghdad from reducing export quantities.

The official Iraqi News Agency quoted Abdul-Jabbar as indicating – in an interview with the government newspaper Al-Sabah – that the government is making efforts to exempt Iraq from the agreement to reduce export quantities, during the first quarter of 2021.

The Oil Minister informed the Iraqi newspaper Al-Sabah – published today, Wednesday – that Overtured All OPEC ministers are major producers in 3 consecutive meetings; On exempting Iraq during the first quarter of next year to request assistance.

Abdul-Jabbar stated that the Ministry of Oil would abide by “the reduction agreement during the next 3 months.”

And Iraq is committed to the production cut agreement approved by the OPEC Plus alliance, which includes members of the organization and independent producers led by Russia, last April, with the aim of restoring stability to global crude markets.

On August 6, Iraq announced a plan to reduce oil production by 400 thousand barrels per day during August, in line with the agreement of the (OPEC Plus) alliance, to achieve the full reduction percentage established within the country’s quota.

Last June, Russia accused countries in the coalition, which it did not name, of not implementing a reduction in production in accordance with the agreement to reduce production by the headquarters coalition during last April.

Last April, the “OPEC Plus” alliance reached a historic agreement to make cuts in oil production amounting to 9.7 million barrels per day with the aim of restoring the balance to crude prices in global markets.

However, with the beginning of last August, the production cut from the beginning of August was reduced to 7.7 million barrels per day until the end of 2020.

Iraqi Oil Minister: The Oil Ministry will adhere to the agreement to reduce production during the next 3 months (Reuters)

Export tube

The Iraqi minister also revealed that the ministry has begun to deliver commercial and technical offers for the construction of a pipeline to export crude oil from Basra (south of the country) to the Jordanian city of Aqaba on the Red Sea, with a capacity of one million barrels per day.

He expected that the first quarter of 2021 will witness the full transfer of the project. To be able to direct after it.

The pipeline will extend for a distance of 1700 kilometers. The implementation will be on the Iraqi side at the expense of the ministry, while on the Jordanian side it will be in the form of investments.

The Iraqi minister added that the success of this project will accelerate the rehabilitation of the Iraqi oil export pipeline through the Turkish port of Hayhan on the Mediterranean.

Iraq is striving to increase the capabilities of crude oil export outlets to be consistent with its future export plans, and to search for markets close to the export ports.







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