Iraq plans to raise crude exports from its southern port of Basra to an all-time high in February, keeping exports high even as the Organization of the Petroleum Exporting Countries (OPEC) production cuts take effect this month, Reuters reported.
The country’s State Oil Marketing Company (SOMO) plans to export 3.641mb/dof crude in February, according to trade sources and preliminary loading schedules, potentially beating a record of 3.51mb/d set in December.This comes as the country’s Oil Minister, Jabbar Al-Luaibi, confirmed that Iraq has reduced its oil production by 160,000b/d and will comply with cuts it agreed to make under an OPEC output, according to Bloomberg.
The February volume includes 2.748mb/d of Basra Light and 893,000b/d of Basra Heavy, the documents showed. For January, SOMO had planned to export 2.627mb/d of Basra Light and 903,000b/d of Basra Heavy. Basra crude accounts for the bulk of oil exports from Iraq, the second-largest producer in OPEC.
The Arabic nation pumped 4.61mb/d in December. Al-Luaibi added that Iraq is cutting production from fields operated directly by the federal government, which produce around 440,000b/d, or less than 10% of Iraq’s total output, Oil Ministry data from September show. The remainder comes from fields operated by international companies, whose contracts entitle them to compensation if the government orders them to curtail production, and the semi-autonomous Kurdish region, whose government has not given any indication that it plans to contribute to the cuts.