2024-02-24T12:39:34+00:00
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/ The Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul-Ghani, confirmed on Saturday that Iraq has reduced its oil production by 600,000 barrels per day as part of OPEC’s plan to bring the country’s production to 4 million barrels per day, while revealing a plan to increase oil production in the southern fields, considering the withdrawal of some investment companies to have economic motives.
Abdul Ghani said in a speech during the (Sixth Baghdad Dialogue Conference/Regional Communication): “The Ministry of Oil has developed an ambitious plan to increase production, but Iraq is a major part of OPEC and is committed to the organization’s production ceilings. Iraq’s share amounted to four million and (600,000) barrels per day. A reduction occurred two years ago and production became four million and (400,000) barrels per day. There are two voluntary reductions that Iraq implemented and production reached (4) million barrels per day,” noting that “the goal of this is to maintain price stability and achieve a balance between supply and demand.”
He added that “most of the oil fields are managed by international companies, and there are ambitious plans to increase production in the Rumaila field in Basra Governorate, which is the largest field, as production currently reaches 1.3 million barrels per day and will reach 1.8 million barrels, in addition to developing the Zubair field, West Qurna and West Qurna 2,” noting that “the development plans and increasing production will be in line with global requirements for crude oil and without flooding the market with surplus oil.”
The Oil Minister added that “OPEC has a plan to increase crude oil production to 16 percent in the coming years,” explaining that “the organization’s current production is around 100 million barrels, and production will reach 116 million barrels per day, depending on market needs.”
He stressed that “Iraq has developed plans to use clean energy, especially in the field of gas, and plans have been developed to invest in gas, and contracts have been signed in this regard and gas flaring has been stopped,” noting that “Iraq has launched two rounds of licensing in the field of gas, targeting more than 33 fields in order to increase gas and transform Iraq from an importing country to a producing country, and it is likely that Iraq will be a source of gas.”
He explained that “the gas investment will be in exploration areas in Nineveh, Anbar, Diwaniyah and Muthanna because they contain large quantities of gas.”
Regarding oil refineries, the Minister of Oil pointed out that “all the oil products produced by the Karbala refinery are environmentally friendly,” noting that “the ministry opened a refining unit in the Basra refineries, as well as the Baiji refinery,” stressing that “the ministry offered investment refineries in many governorates, and there are companies that have expressed a desire to invest in those refineries, and the offers will be studied by the ministry.”
He stressed that “the Ministry of Oil is keen to transform Iraq from an importer to an exporter in the field of petroleum products, especially gas oil and kerosene. The ministry was able to stop many petroleum products, and the import of gasoline was reduced from 16 thousand cubic meters per day to 6 or 7 thousand cubic meters. During the coming months, these quantities will be reduced and the import will be stopped with the second half of this year.”
Abdul Ghani explained that “foreign companies are still operating freely in Iraq and are expanding and growing in both oil and gas investment. As for the companies that withdrew, they did so of their own free will and for purely economic reasons, especially Exxon Mobil. This company was informed that it did not agree to withdraw, but it insisted on withdrawing because of finding investment opportunities in Africa.”
He added, “These companies aim to achieve profits and look for profitable opportunities wherever they may be. As for foreign companies, especially European ones, they have a desire to invest in gas fields in Iraq.”