Iraq has announced that it will only cut production by 700,000 barrels per day (bbl/d), a third less than the required rate from the Organization of the Petroleum Exporting Countries and its allies’ (OPEC+) supply pact, after international oil companies (IOCs) rejected further cuts, according to Reuters. 

According to officials, Iraq has agreed with oil majors operating its five giant southern oilfields to cut 300,000 bbl/d. The country will also lower production from other fields which it operates alone, bringing the total reductions to slightly under 700,000 bbl/d. Iraqi acting oil minister, Ali Allawi, said that the oil majors operating in the Southern fields were taking “a defensive position”. 

Despite this, Allawi said that Iraq remains fully committed to the oil cut agreement reached by the OPEC+.

Iraq signed the OPEC+ agreement in April whereby committing the country to 1.06 million barrels per day (mmbbl/d). The OPEC+ agreement signed in April was designed to curb the world’s oil production by 20%.