Iraq to hike oil output, rules out OPEC quota

07 May 2010

(MENAFN) Iraq?s Oil Minister, Hussain Al-Shahristani, said that the ministry sees no need to discuss an OPEC quota until the country?s production reaches 4 million barrels per day (bpd) and any talk of a specific limit before then is premature, Reuters reported.

The minister pointed out that Iraq has agreed several deals that would boost output to over 12 million bpd in seven years from the current 2.5 million bpd.
Unless global oil demand grows rapidly, OPEC is unlikely to sit back and let Iraq increase output at will. Analysts expect tough negotiations to take place with Iraq on a level for eventual output curbs.

Al-Shahristani said that the service contracts Baghdad has signed with some of the world’s largest oil firms encourage quick gains in output. Payment for investments made is not triggered until those gains are made, he said.

It is worth mentioning that Iraq is the only member of OPEC’s 12 member-bloc that doesn?t have an output quota, as the ailing country plans to rebuild its shattered economy after years of war and sanctions.

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