Iraq, which has systematically found it hard to comply with the OPEC+ oil cuts, is unlikely to reach full compliance with the quotas despite some improvements in its conformity levels, the Oxford Institute of Energy Studies said on Wednesday
MOSCOW (Pakistan Point News / Sputnik - 08th July, 2020) Iraq, which has systematically found it hard to comply with the OPEC+ oil cuts, is unlikely to reach full compliance with the quotas despite some improvements in its conformity levels, the Oxford Institute of Energy Studies said on Wednesday.
"Several signals suggest that Iraq's compliance is set to improve over the coming months ... Undoubtedly, while Iraqi compliance is set to improve in the coming months, full compliance will unlikely be reached, keeping Iraqi oil production dynamics in the spotlight," the institute said in a statement.
In order to achieve compliance with the oil curtailment deal, Iraq has already made requests for several international oil companies operating in the country to reduce production, the think tank noted.
In particular, ExxonMobil has reduced output by 120,000 barrels per day (bpd) at its West Qurna-1 oil field, Russia's Lukoil has cut 120,000 bpd at the Qurna-2 field and BP has reduced output at Rumalia filed by 115,000 bpd.
However, such challenges as the need to ensure that the oil cuts do not impact associated gas output, as well as the need to pay compensation for the cuts to the international oil companies, may lower the chances of Iraq's full compliance with the OPEC+ agreement.
The OPEC+ countries met in June via a videoconference and decided to extend the deep cuts of 9.7 million bpd into July, as well to further stabilize the market. Iraq and Nigeria admitted that they had not managed to achieve full compliance in May and June and vowed to contribute more cuts over the following months.
