Ministry of Oil Denies Iraq Proposed OPEC Withdrawal

Iraq's Ministry of Oil affirmed that the country has not proposed withdrawing from the Organization of the Petroleum Exporting Countries (OPEC), refuting recent reports about Baghdad threatening to end its membership. A ministry statement issued on Thursday clarified that the circulating information does not reflect the official stance of the Iraqi government. Neither the Prime Minister nor the Iraqi government has discussed or put forward the issue of withdrawal. Instead, Iraq has consistently emphasized the importance of reassessing production ceilings to align with the sustainable production capacities of member states. This approach is in accordance with agreements approved by all relevant countries and understandings regarding Iraq's unique security and economic situation. The statement highlighted that OPEC countries and their allies (OPEC+) have responded to this direction. A process to re-evaluate the maximum sustainable production capacity of member states has already been launched. This process is currently being implemented in coordination with an independent international consultancy, with active participation from Iraq, according to the adopted timeline. It was further stated that OPEC+ countries have indeed begun gradually reinstating reduced quantities, and all voluntary cuts are scheduled to be fully returned within the coming months. This measure is expected to contribute to enhancing Iraq's production ceiling. The statement stressed that any demands related to production ceilings or capacity levels are exclusively addressed through the technical and consensual mechanisms adopted within the framework of OPEC and its allied nations. The statement also noted a high-level understanding among member states regarding Iraq's special circumstances. This includes the challenges faced by the Iraqi oil industry over more than forty years, including wars, sanctions, and more recently, the widespread destruction of its oil and supporting infrastructure due to subversive terrorist attacks. The ministry affirmed that these factors will be taken into consideration to ensure that Iraq's oil production reaches a fair level, enabling it to regain its position as the second-largest producer within the organization and achieve the desired outcomes from development and rehabilitation projects across all segments of the oil industry, which constitutes the primary source of Iraq's financial revenues.