Iraq’s Ministry of Oil has clarified that reports suggesting the country threatened to withdraw from OPEC do not reflect the official position of the Iraqi government. According to the ministry, neither the prime minister nor the government has raised the issue of withdrawal.
The ministry said Iraq has consistently called for a reassessment of production quotas in line with the sustainable production capacity of member states, in accordance with agreements endorsed by all relevant countries and arrangements reflecting Iraq’s security and economic circumstances.
Full statement from the Ministry of Oil:
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Clarification
Reports that have circulated regarding Iraq’s hint at withdrawing its membership from OPEC do not reflect the official position of the Iraqi government. Neither the Prime Minister nor the Iraqi government has raised the matter of withdrawal. Rather, Iraq has consistently affirmed the importance of reassessing production ceilings in a manner consistent with the sustainable production capacities of member states, in accordance with the agreement endorsed by all relevant countries and the understandings pertaining to Iraq’s security and economic situation.
In this context, the OPEC member states and their allied countries have responded to this orientation by launching a process to reassess the maximum sustainable production capacity of member states. This process is currently being implemented in coordination with an independent international consultancy firm, with Iraq’s active participation, in accordance with the approved timeline.
Furthermore, the OPEC member states and their allied countries have already begun gradually restoring the reduced volumes, and the complete return of all voluntary reductions is scheduled to be finalised over the coming months, thereby contributing to an enhancement of Iraq’s production ceiling. Accordingly, any demands relating to production ceilings or production capacity levels are being addressed through the established technical and consensus-based mechanisms within the framework of OPEC and its allied states.
We also wish to note that there exists a high-level understanding among the Organisation’s member states of Iraq’s particular circumstances and of what the Iraqi oil industry has endured over more than forty years of wars, blockades, and challenges – most recently the destruction of numerous components of its oil and supporting infrastructure through acts of terrorist sabotage. This will be taken into consideration so that Iraqi oil production may reach the equitable level that enables it to reclaim its position as the second-largest producer within the Organisation’s member states, and to achieve the desired outcomes of the development and rehabilitation projects across all sectors of the oil industry, which constitute the principal artery of Iraq’s financial revenues.
