By January 23, 2017 Read More →

Iraq oil production down 180,000 b/d as part of OPEC supply deal

Iraq oil production

Iraq oil production is down as the country falls in line with the OPEC supply cut deal. photo.

Iraq oil production to be cut by a further 30,000 b/d by month’s end

By Ahmad Ghaddar

LONDON, Jan 23 (Reuters) – Iraq oil production has been reduced by around 180,000 barrels per day and plans to cut a further 30,000 b/d before the end of the month, the OPEC member’s oil minister said on Monday.

The cut came from a 4.75 million b/d level, Jabar Ali al-Luaibi told reporters at an industry event at Chatham House in London.

“We are abiding by OPEC policy and the OPEC agreement,” Luaibi said.

Iraq agreed to lower its production by 210,000 b/d under a deal struck in December between the Organization of the Petroleum Exporting Countries and other producers led by Russia.

The Middle Eastern country, OPEC’s second-largest producer, had originally sought to be exempt from any cuts, saying it needed the revenue to fight an Islamic State insurgency.

“We are cutting from all Iraq,” Luaibi said, although he added that cuts to production started at fields operated by national oil companies.

He said the ministry had contacted international oil companies operating in the country about the cuts and so far received a “good response” from most of them.

He said Russia’s Lukoil, which operates the West Qurna-2 oilfield, told him recently that the company was prepared to lower output by 20,000 b/d without compensation.

“BP as well and some other companies are responding,” he added.

“So far everything is moving smoothly as far as the oil companies are concerned.”

(Reporting by Ahmad Ghaddar; Editing by Dale Hudson)

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