Iraq's Oil Ministry announced on Friday that OPEC has initiated a gradual reinstatement of the nation's pre-war production allocations, a move the ministry said will strengthen Iraq's output capacity and support the recovery of its oil sector.
In a statement carried by the state news agency, the ministry said Baghdad backs a reassessment of OPEC production quotas to better reflect the conditions of member countries, explicitly citing Iraq's economic and security circumstances as relevant factors behind that position.
The same statement noted that Iraq's Prime Minister Ali Faleh al-Zaidi had not held discussions about the possibility of Iraq leaving OPEC. That clarification came after an earlier report on Thursday indicated that Iraq - OPEC's second-largest producer after Saudi Arabia and one of its five founding members - has contemplated leaving the group if it is not permitted to significantly increase oil production.
The ministry's comments emphasized the link between quota restoration and Iraq's ability to rebuild oil-sector capacity. Iraq depends on oil for the bulk of its government revenue, and those revenues have been curtailed since the Iran war effectively blocked exports through the Strait of Hormuz, according to the statement.
For July, Iraq's official OPEC quota is set at 4.378 million barrels per day, though the country is producing well below that level at present because of disruptions tied to the Hormuz situation, the ministry said. The statement also noted that the United Arab Emirates left OPEC less than two months ago.
The ministry framed both the phased restoration of allocations and a formal quota reassessment as measures to align OPEC policy with on-the-ground realities faced by members. It reiterated that Baghdad seeks changes that would better reflect member states' differing economic and security environments while denying that formal discussions about an OPEC exit have taken place among the country's leadership.
Summary
OPEC has started restoring Iraq's pre-war production allocations, which Baghdad says will help rebuild output capacity and revive the oil sector. Iraq supports a quota reassessment to account for member states' economic and security conditions. Officials denied talks of leaving the group, though separate reporting indicated Iraq has considered withdrawal if it cannot raise output.