SULAIMANI (ESTA) — The Kurdistan Regional Government (KRG) has committed to reducing crude oil output in line with OPEC+ decisions, the government’s spokesman said on Thursday.
KRG Spokesman Jotiar Adil said the Regional government had no issue of reducing oil crude output in agreement with the federal government.
“The KRG has no objection to the continuation of production reduction in accordance with the fair rate that has been agreed, provided that the federal government is fully committed to covering the dues and expenses of KRG loses as a result of reduced production levels,” Adil said in a statement.
Adil referred to an agreement reached between the KRG and the federal government in April, saying the deal stressed the need to take into account fairness in determining the rate of production in the Region’s crude oil output.
“So that it is based on the quantity produced by the KRG in comparison with the total production of Iraq, and that this reduction does not cause additional significant financial damage to KRG.”
The KRG spokesman’s remarks came after Iraqi Oil Minister Ihsan Abduljabar said on Tuesday that the KRG had not been contributed to the OPEC+ cuts.
Under an agreement between the Organization of the Petroleum Exporting Countries and allies led by Russia – a grouping known as OPEC+ – Iraq agreed to curb its output by 849,000 bpd to 3.8 million bpd until the end of the year.
However, because of a previous deviation from this target, OPEC+ asked Iraq to make additional compensation cuts until December. The group found Iraq overproduced by a cumulative 578,000 bpd in May to September, according to an internal document.
