Iraq's Oil Ministry has postponed its request to international oil companies operating on the country's territory to cut their budgets by 30 percent, as the ministry needs to evaluate the current situation in the oil market in light of the coronavirus pandemic, the ministry's spokesman, Assem Jihad, told Sputnik on Friday
BAGHDAD (Pakistan Point News / Sputnik - 27th March, 2020) Iraq's Oil Ministry has postponed its request to international oil companies operating on the country's territory to cut their budgets by 30 percent, as the ministry needs to evaluate the current situation in the oil market in light of the coronavirus pandemic, the ministry's spokesman, Assem Jihad, told Sputnik on Friday.
On Thursday, state-run Basra Oil Company (BOC) asked all of the foreign oil companies working in Iraq including Russia's Lukoil, Italy's Eni, the UK's BP and the US' Exxon mobile to cut their respective budgets for developing oilfields by 30 percent, after the slump in oil prices hit revenues of the government.
"This question has been postponed at the current moment until we see what will happen in the oil market," Jihad told Sputnik, adding that this issue was being discussed with partners.
The official also stated that the pandemic had not affected domestic oil production or exports.
"The coronavirus did not affect the Iraqi oil exports and production. Iraq currently has a capacity of 5 million barrels, but Iraq is currently exporting [crude oil] according to its obligations with OPEC. Regarding the coronavirus, it has not affected Iraqi production rates, and therefore we have an opportunity and space to control production operations," Jihad said in an interview.
Jihad added that Baghdad was able to achieve great progress on stabilizing the market situation via talks with OPEC partners and also outside of the organization. However, due to the suspension of flights around the world over the COVID-19 outbreak, the next OPEC meeting has been postponed until further notice.
Energy companies cut spending on oilfield production worldwide after Brent crude fell by more than half since the year's beginning. It is currently being traded at around $26 per barrel.
The global toll of COVID-19 has exceeded 540,000 cases, and the death toll had topped 24,000, according to Johns Hopkins University's coronavirus resource center.
