OPEC’s second largest producer, Iraq, has announced plans to boost its crude oil exports by 5 per cent in early September, as the country resumes shipments from three oil fields in Kirkuk.
In total, Iraq will add around 150,000 barrels per day to its exports, from the Baba Gorgor, Jambour and Khabbaz fields.
The Northern Oil Company had halted production at those fields in March due to non-payment of funds.
Iraq has struggled to export oil from its northern fields in the volumes that it would like, due to an on-going dispute with the Kurdish Regional Government over export rites.
The announcement came in the lead up to an informal OPEC meeting, to be held in Algeria. OPEC members are set to discuss a production freeze, which is looking increasingly unlikely as Iran has already said it will not freeze its production and regional rival Saudi Arabia continues to pump at record high levels. Iraq’s announcement that it will boost its own export levels to an already overly saturated market is likely to be another sticking point when the OPEC cartel meets later this month.
Iraq produced 4.606 million barrels per day in July compared with 4.44 million at the end of last year, according to data compiled by OPEC.