The national oil marketing company Somo responded to what was circulated about Iraq's oil production
The national oil marketing company Somo responded to what was circulated about Iraq's oil production in January, stressing that Iraq’s production ceiling set for the first quarter of 2021 is 3,857,000 barrels per day.
"The media outlets reported that Iraq's production reached 3,870,000 barrels per day in January, according to its sources, and in this regard we would like to show that Iraq’s production ceiling set for the first quarter of 2021 is January 2021 and March 3,857,000 barrels per day," Somo said in a statement.
"Based on the 2,868,000 barrels per day export rates achieved for January and 397,000 barrels per day for Kurdistan, Iraq’s total export for January is 3,265,000 barrels per day," the statement said.
"The internal consumption of the federal government as planned is 520,000 barrels per day, while the internal consumption of Kurdistan province, according to the latest report of Deloitte, is 22,000 barrels and Iraq's total consumption is 542,000 barrels per day," the company said.
"Iraq's total production for January is 3,807,000 barrels per day, and Iraq's commitment for January is 106 percent," the statement said.
"Iraq has implemented approximately 50,000 barrels/day of the total compensatory amount of 626,000 barrels per day, so the remainder of the compensation during February, March is (576,000 barrels/day), with the presentation that the data to be adopted for the issuance of the compensation plan for the coming period will be based on the final reports of secondary sources institutions," it said.
Benchmark Brent crude has nearly tripled to around $55 per barrel since OPEC+ began restricting supplies, but it is still far below what Iraq needs to balance its budget and boost its economy.
The IMF predicted that Iraq's Gross Domestic Product (GDP) would shrink by 12%, more than any other OPEC member under the production quota