Baghdad urges OPEC to raise Iraq's production quota

BAGHDAD: Baghdad has urged OPEC to increase Iraq's oil production quota, taking into account the damage done to its industry by its history of conflicts and the recent regional war, its oil ministry said on Thursday. 

Like other oil producers, Iraq, a founding member of OPEC, was greatly affected by the Middle East war, as it is hugely dependent on oil exports, which make up about 90% of its budget revenues. Iraq's oil ministry said that reassessing production baselines was important "to ensure they are aligned with the sustainable production capacities of member countries", and with respect to "Iraq's unique security and economic circumstances". 

OPEC has "responded by launching a process to reassess" its member states' capacities, the ministry said. Following reports of a possible Iraqi exit from OPEC, oil ministry spokesperson Salim al-Rikabi told AFP that Iraq "has no intention of withdrawing from the organisation and remains committed to its mechanisms". 

But he added that the cartel "has to raise Iraq's production quota. Otherwise, a decision will have to be made about whether to stay or leave the organisation". Iraq has started increasing its production "in line with its capacities and needs", he said. The ministry said that "reports suggesting that Iraq is considering ending its membership in OPEC do not reflect" the government's position. 

An Iraqi exit would further weaken OPEC after the UAE pulled out of the cartel in May, citing "national interests" and a broader plan to future-proof its economy. Iraq's ministry said that any change would be decided within OPEC's existing framework, but noted there was a "high level of understanding" among members regarding Iraq's situation after decades of wars, sanctions, and recent attacks on the sector during the Middle East War. 

All of these challenges will be considered to "ensure that Iraqi oil production reaches a fair level".

By RSS/AFP