Iraq will Cut its Oil Production according to OPEC Agreement: Oil Minister

The Iraqi Oil Minister Jabbar Allaibi said in a statement that Iraq is dedicated to decrease its oil production according to the global agreement to provide support in stabilizing the oil prices. He further added that he is still hopeful that Iraq has been considered the second largest oil producing country in the Gulf region and one of the largest oil exporters in OPEC. He said that Iraq has the ability to increase its production in the coming years. Allaibi said in a press interview that Iraq is looking for a number of options regarding cuts including a significant decrease in its production from the oil fields of Kirkuk. Its South fields are being developed by some major oil companies for production in other areas under the instructions by the Iraqi government.

Iraq will Cut its Oil Production according to OPEC Agreement: Oil MinisterAllabi further said that the cuts objective was to reach the numbers that have been agreed upon with OPEC, but according to the terms of decreased production areas, so there are a number of options on the table. The OPEC conducted an important meeting in the last week of November 2016 in order to cut oil production by 1.2 million barrels per day and it will be started from the month of January 2017. It will reduce the oil production in Iraq estimated at 200,000 barrels per day to 4.351 million barrels per day. It is important that Iraq has demanded exemption from OPEC restrictions due to extra need from oil revenues. It was due to Iraqi expenses are too high in the fight against terrorism and to eliminate Daash & other terrorist gangs from the country. He also pointed out that Iraqi oil ministry has locked in discussion with foreign companies in the southern Iraq to impose some cuts during their scheduled period of maintenance.

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