Iraqi Minister of Oil decided to reduce oil export
Ministry of oil in Iraq stated “to comply with the OPEC and allied countries oil agreement policy under the joint cooperation agreement (DoC), a voluntary reduction order of oil producing and exporting took place”
ERBIL, Kurdistan Region (Kurdistan 24) – in an announcement to the press, the Iraqi Ministry of Oil reported that they made a decision on Friday November to reduce exporting oil volume in complying with the Organization of the Petroleum Exporting Countries (OPIC)’s orders.
The announcement from the ministry stated:
“In line with the Republic of Iraq’s commitment to the decisions by the OPEC and allied countries under the joint cooperation agreement (DoC), regarding the voluntary reduction of oil production.
We confirm that Iraq has reduced its production and oil exports to 3.3 million barrels per day, in addition to decrease the domestic consumption.
This volume reducing will continue for the next coming months to ensure that producing and exporting remain within the agreed limits.
It will also compensate the surplus produced over the past months, this necessary action aims to enhance the balance and stability in the global oil markets”
The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, signing an agreement in September 1960.
Its headquarters was in Geneva, Switzerland, for the first five years, then it was moved to Vienna, Austria, on September 1st, 1965.
OPEC’s mission is to coordinate and unify petroleum policies among member countries, it has the authority to set rules and issuing orders accordingly, it aims to secure fair and stable prices for petroleum producers.
However, Kurdistan Region has its own oil fields and companies in the petroleum market world, but it is still in the Iraqi state and abides by the OPEC policy.
Read More: APIKUR renews call for tripartite talks to resume KRG oil exports
Iraq halted Kurdish oil export from their own territory, it has been one of the outstanding issues between Baghdad and Erbi, however, over past recent months, an agreement is on the table to avoid any further damages due to the pause of the oil export.
Read More: Association of Oil Companies Calls for Resumption of Kurdish Oil Exports
Kurdistan Region, previously exported 450.000 barrels per day to Turkey, as an oil and gas law regulating oil wealth management within Iraq.
Read More: Iraq blocks Kurdistan Region oil exports to stay within OPEC quota, MP claims
Contributed to and translated by Seyran