Iraq Nov crude output below Opec+ target: Somo
Iraq's crude production dropped by 96,000 b/d on the month to 4.093mn b/d in November, according to state-owned Somo, leaving output 127,000 b/d below its Opec+ output target.
Iraq has been one of the Opec+ group's serial overproducers, exceeding its target by an average of 123,000 b/d between August-October. But Baghdad in November confirmed its commitment to its pledged output target and gave repeated assurances during the Opec+ meeting on 30 November that it will fully comply with the cuts.
The recent Opec+ meeting resulted in Iraq's output target being reduced to 4mn b/d, effective from 1 January.
Export loadings from the southern Basrah oil terminal averaged 3.393mn b/d in November, a 92,000 b/d decrease from 3.485mn b/d in October, Somo said. Neighbouring Jordan received 6,000 b/d of Iraqi crude in November, down from 15,000 b/d in October. Bad weather at Basrah ports and demonstrations at the Iraqi-Jordanian border have resulted in interruptions to oil exports, Somo said, resulting in a 11,000 b/d stock build.
The amount of Iraqi crude supplied to domestic refineries fell 406,000 b/d from 600,000 b/d. Somo said Iraq burned around 128,000 b/d for power in November, as temperatures fell. Somo in previous months provided a generic 15,000 b/d to 20,000 b/d figure for crude burn, depending on the months of the year and temperatures.
Somo estimates put production in the northern semi-autonomous Kurdistan region at 116,000 b/d, all delivered to refineries in the north as exports have been shut in since 25 March.
"Iraqi government is not aware of and responsible for any extra quantities produced and smuggled from [the Kurdistan region]," an oil ministry source told Argus.
The Association of the Petroleum Industry of Kurdistan (Apikur), an industry body representing IOCs operating in Iraqi Kurdistan, today said it is ready to discuss the return of crude exports through the Iraq-Turkey Pipeline [ITP], but said it has neither been included in the meetings between Iraq's federal government and the KRG nor invited to participate in any future meetings.
"We believe concrete solutions can be implemented immediately that will satisfy all parties, protect the contractual rights of the IOCs and enable the resumption of oil exports from the Kurdistan Region of Iraq," Apikur said.
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