Iraq, Kurdistan Confirmed Commitment to Output Cuts

Iraq, Kurdistan Confirmed Commitment to Output Cuts

Iraq’s Oil Minister, Jabbar Al-Luaibi, said that most international oil companies working in the country, along with the semi-autonomous region of Kurdistan, have agreed to cut crude output to fulfill an OPEC accord. Al-Luaibi comments came on the sideline of a meeting of the Organization of Arab Petroleum Exporting Countries (OAPEC) held in Cairo, Egypt during late December, The Daily Star Lebanon reported.

Head of Kirkuk province’s Oil, Energy and Industry committee, Ahmed Al-Askari, said that the oil-rich Kirkuk province, under the protection of the nation’s Kurds since 2014, is prepared to reduce output if the decrease is “proportional” with the Iraq’s other regions, according to Bloomberg.

Kirkuk hasn’t yet received any official request to cut oil output, with the state-run North Oil Co. pumping about 160,000 to 170,000b/d from the region. However, in early December, the Kurdistan Regional Government, which accounts for 12% of the nation’s output, said it didn’t expect to make significant output cutbacks to fulfill the OPEC accord.

Iraq agreed to join fellow members of the Organization of Petroleum Exporting Countries in an agreement on November 30 to reduce output, as the group seeks to clear a persisting oil surplus. Under the accord, the country will curb supplies by 210,000b/d as of January 2017, the equivalent to about 4.5% of its total production.


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