Iraq confirms its commitment to reduce oil production

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Iraq confirms its commitment to reduce oil production

Tuesday 29 December 2020 46

 

  Baghdad: Saad Al-Sammak

 

Iraq reaffirmed its full commitment to OPEC Plus's limitations in reducing crude oil production, in accordance with the decisions of the organization and its allies to reduce the oversupply and control oil prices, which fell to a low level last May.

The director general of the Basra Oil Company, Khaled Hamzah, confirmed to Al-Sabah, "The export rate has stabilized at two million 700 thousand standard barrels per day, through the Al-Faw oil port."  

Hamzah added, "Iraq committed itself to reducing crude oil production during the last period, in accordance with the quotas specified in the organization's program, stressing continuation at this level."

He explained, "The Ministry of Oil has prepared plans to implement strategic projects to double the export capacity of oil ports, which currently amount to more than (4 million barrels per day), to accommodate the expected increases in production."  

Meanwhile, the Ministry of Oil revealed its plan to add a new floating platform to the previous platforms within the Japanese loan, as well as new pipeline projects and periodic maintenance operations. 

 In a statement to the ministry, Deputy Minister of Oil, Karim Hattab, said: “We are working to provide an appropriate environment for workers who are keen to maintain oil exports.” This comes after Hattab's visit to the Basra oil port last Saturday.

It is noteworthy that OPEC countries and countries from outside reached an agreement to reduce production, starting from the beginning of last May, by reducing about 9.7 million barrels per day, or the equivalent of about 10 percent of the total global production, after the price of a barrel fell to a level below $ 16 a barrel, affected On the repercussions of the Corona pandemic, and US oil prices fell below zero for the first time in history.