Iraq is cutting its oil output a third less than required under an OPEC+ supply pact, by around 700,000 bpd. To cut 300,000 bpd, Iraqi oil officials said on Wednesday Iraq has agreed with oil majors operating its five giant southern oilfields. Bringing the total reductions to slightly below 700,000 bpd, Iraq will also lower production from other fields which it operates alone.
Under the OPEC+ pact, 1.06 million bpd is the country’s oil output cut target for May and June. Slashing output by 9.7 million bpd for May and June agreed last month by OPEC+, a record production cut.
The difficulties which are facing Iraq to fully comply with the OPEC+ crude supply reduction pact indicated by the refusal by the oil majors to cut more oil. They had to agree with this deal to avoid paying the companies for the curtailed production, two senior Iraqi officials who are part of the talks with foreign companies said.
