Iraq Denies Reports of Potential OPEC Exit, Calls for Review of Production Quotas

The Ministry’s media office

Iraqi Oil Ministry building.

The Iraqi Ministry of Oil has stated that reports suggesting Iraq may withdraw from OPEC do not represent the official position of the Iraqi government. The Ministry stressed that neither the Prime Minister nor the government has raised the issue and highlighted the considerable understanding among OPEC member states regarding Iraq’s particular circumstances.

In a statement obtained by PUKMEDIA, the Ministry said claims that Iraq could leave OPEC were inaccurate, noting that Iraq has consistently called for a review of production quotas to ensure they reflect the sustainable production capacities of member states. It added that this approach is in line with agreements approved by participating countries and takes into account Iraq’s security and economic conditions.

The Ministry explained that OPEC and its allies have already launched a process to reassess the maximum sustainable production capacity of member states. The review is being carried out in cooperation with an independent international consultancy, with Iraq actively participating according to an agreed timetable.

It further noted that OPEC and allied producers have begun gradually restoring previously reduced output levels, with the full reversal of voluntary production cuts expected within the coming months. This, the Ministry said, will help strengthen Iraq’s production ceiling.

According to the statement, any requests relating to production quotas or production capacity are addressed through OPEC’s established technical procedures and consensus-based mechanisms.

The Ministry also underlined the strong level of understanding among OPEC members regarding Iraq’s unique situation and the challenges faced by its oil sector over the past four decades, including wars, sanctions and, more recently, terrorist attacks that damaged significant portions of the country’s oil and supporting infrastructure.

It added that these factors should be taken into account to ensure Iraq reaches a fair production level, allowing it to reclaim its position as OPEC’s second-largest producer and maximise the benefits of development and rehabilitation projects across the oil sector, which remains the backbone of the country’s revenues.

The clarification followed a Bloomberg report on Thursday suggesting Iraq had hinted at the possibility of leaving the Organization of the Petroleum Exporting Countries (OPEC) if its production quota was not increased.

Bloomberg quoted Oil Ministry spokesman Salim al-Rikabi as saying that Baghdad currently has no plans to leave OPEC and remains committed to working within the organisation’s framework and mechanisms. However, he indicated that the Ministry intends to continue increasing production in line with Iraq’s capabilities and requirements.

Al-Rikabi said OPEC should take Iraq’s position into consideration by raising its production quota, warning that if no progress is made, Baghdad may eventually have to decide whether to remain within the organisation or withdraw.

Earlier on Thursday, Reuters cited a senior oil official as saying Iraq is facing a severe financial strain due to a significant decline in oil exports linked to regional circumstances, adding that the country’s request for a higher production quota should be treated with the utmost seriousness.


PUKMEDIA