Iraqi Prime Minister Ali El-Zeydi clarified his country's position within the Organization of the Petroleum Exporting Countries (OPEC). The Prime Minister announced that they have no intention of leaving OPEC, but demand a fair and equitable share in production quotas.
In a televised interview released through his media office, El-Zeydi said, "Iraq is one of the founding countries of OPEC and we will never leave, but we want a fair and equitable share in production."
This statement came weeks after a Reuters report that Iraq was considering withdrawing from OPEC if it was not allowed to significantly increase its production. The Iraqi government is demanding a review of production quotas in proportion to its economic needs.
Production cut restrictions within the OPEC+ alliance are putting Iraq under increasing financial pressure. The Baghdad administration believes that current production levels do not reflect the country's oil potential and the needs of an economy largely dependent on oil revenues.
The OPEC+ alliance had decided earlier this week to increase daily production by about 188,000 barrels for August. This is part of a plan for a gradual supply increase to global markets.
New Partnership with the US on the Way
Prime Minister El-Zeydi announced that during his visit to Washington at the end of the month, they will announce a "political cooperation and economic partnership" with the US. Stating that Iraq is careful to maintain balance in its relations with Iran and the US, El-Zeydi said that Baghdad aims to create "a state of rapprochement" between the two countries.
This step appears to be in line with Iraq's efforts to strengthen economic ties and attract more foreign investment while maintaining a policy of balance in its regional and international relations.
Hamrin Field Agreement Signed
As part of plans to increase production capacity, the Iraqi government signed an agreement with US-based HKN Energy for the development of the Hamrin oil field. The project aims to raise the field's production capacity to 140,000 barrels per day and gas production to 40 million standard cubic feet per day.
