Iraq: OPEC Begins Gradual Reinstatement of Oil Quotas, Supports Return to Prominent Producer Status

The Ministry of Oil announced on Friday that the Organization of the Petroleum Exporting Countries (OPEC) has begun a gradual reinstatement of Iraq's pre-war export volumes, a move expected to boost its production capacity. The ministry highlighted a high-level understanding within OPEC that considers Iraq's past circumstances and current demands. Speaking to the official news agency, the Ministry of Oil spokesperson, Salim al-Rikabi, stated that the Prime Minister had not raised the issue of Iraq's withdrawal from OPEC. Al-Rikabi emphasized that the government affirms the importance of re-evaluating production ceilings to align with the conditions of member states and the agreed-upon understandings, while taking into account Iraq's specific security and economic circumstances. Al-Rikabi added that OPEC and its allies have responded to this approach by initiating a process to assess the sustainable production capacity of member states. This process is being conducted in coordination with an independent international consultancy firm, with active participation from Iraq, according to an agreed timeline. He further explained that OPEC and its allies have also started gradually reallocating production quantities, particularly voluntary cuts, over the coming months, which will contribute to enhancing Iraq's production capacity. Al-Rikabi affirmed that any demands related to production ceilings or levels are discussed and addressed through the technical and consensus-based mechanisms adopted within OPEC and its alliance. Al-Rikabi pointed to a high-level understanding among member states that acknowledges the exceptional circumstances Iraq has experienced over the past four decades. This includes the wars and challenges faced by the oil industry, as well as damage to oil and supporting infrastructure resulting from terrorist attacks. He underscored that these considerations will be taken into account to ensure Iraq's oil production reaches an equitable level, enabling it to regain its position as the second-largest producer within OPEC. This is expected to achieve the objectives of oil sector development and rehabilitation projects, which constitute the primary pillar of the national economy and the main source of Iraq's revenues.