Baghdad, The Iraqi Oil Marketing Company “SOMO” announced, on Sunday, that Iraq has entered the second phase of the reduction since last August, while it confirmed obtaining an exception by extending the compensation until December.
SOMO said in a statement received by the National Iraqi News Agency / NINA /: “The OPEC + agreement has already entered its second phase since last August 2020,” indicating that “the reduction in production for Iraq amounting to (1061) kilobytes per day is no longer valid as the percentage at this stage are 18% of Iraq’s production, equivalent to (849) kilobytes. ”
It added that “the levels of conformity recorded in Iraq for the months of August and September are higher than 100% in order to fulfill its obligations based on the compensation plan presented as it exceeded the basic limit for Iraq in addition to compensation of 1.2 million barrels per day.”
It pointed out that “the last meeting of OPEC + JMMC approved the extension of the compensation period until December 31, 2020, and therefore Iraq presented a new compensation plan, taking into account the months of the extension, as the main reduction became, in addition to compensation, about 1 million barrels per day, even at the end of this year, and therefore more than 200 thousand barrels per day, which Iraq did in August and September, can be added to its production without violating its commitment to the OPEC + agreement to reduce production.”
SOMO emphasized “Iraq’s full support and commitment to what has been agreed upon with OPEC member states and non-OPEC countries under the Declaration of Cooperation with the aim of achieving market rebalancing for sound global economic growth.”
OPEC + agreed in April to reduce oil prices after they fell to less than $ 20. The text of the agreement includes a reduction in oil production by the coalition by 9.7 million barrels per day and 300,000 barrels per day, which US oil companies said will reduce them on their part.
The reduction decision began from the beginning of May and for a two-month period, followed by another agreement that begins in August to reduce production cuts to 8 million barrels per day until the end of 2020.
A third reduction in production begins, by 6 million barrels per day, which is two million barrels less compared to the previous agreement, which starts in early 2021 until April 2022.
Iraq’s share of the reduction was 1.061 million barrels per day, while the reduction of Russia and Saudi Arabia amounted to 2.508 million barrels per day, and the rate of reduction of the UAE amounted to 722 thousand barrels per day.
Previously, the Parliamentary Oil and Energy Committee called on SOMO to negotiate with OPEC + to reduce the percentage of oil cuts for Iraq, given that Iraq is going through a stifling financial crisis.
Source: National Iraqi News Agency