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20-03-23

Minister: Iraq Committed to OPEC+ Quota, Open to Increasing Oil Production

(MENAFN) Iraq's Oil Minister, Hayan Abdel-Ghani, has stated that the country is committed to maintaining its 220,000 barrel per day oil output cut in line with its quota under the latest OPEC+ agreement. The minister also added that Iraq is ready to increase production if required to do so by the producer group. The country has obliged some oil companies operating in the south to cut production to come in line with OPEC+’s agreed rates.

Abdel-Ghani made the comments on Sunday at an energy event where he also stated that talks between French oil major TotalEnergies and Iraq to resolve sticking points in a long-delayed $27 billion energy deal "have reached advanced stages". The proposed deal, which Baghdad hopes will revive foreign investment in the country, was signed in 2021 for TotalEnergies to build four oil, gas, and renewables projects with an initial investment of $10 billion in southern Iraq over 25 years.

However, Iraq's demand for a 40 percent share in the project is a key sticking point while TotalEnergies wants a majority stake, according to sources cited by Reuters. The minister did not comment on the share issue but stated that the deal would be activated soon.

The Iraqi government's commitment to OPEC+'s oil output cuts is significant as it demonstrates the country's adherence to the agreed-upon production levels. Iraq's compliance with the cuts is crucial in supporting the global oil market's stability and balancing supply and demand dynamics.

The proposed energy deal with TotalEnergies is also significant for Iraq as it aims to attract foreign investment and revive its energy sector. The project's initial investment of $10 billion is expected to create job opportunities and contribute to the country's economic growth. The talks' advanced stages signify progress and the potential for the deal's activation soon, which would be a positive development for both Iraq and TotalEnergies.

The issue of Iraq's share in the project remains unresolved, but the minister's comments suggest that negotiations are ongoing. The resolution of this issue is crucial in ensuring the deal's success and boosting foreign investment in Iraq's energy sector. The outcome of the negotiations will be closely watched by the industry and stakeholders as it will have implications for Iraq's energy sector and its future prospects.
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