Iraq Asks OPEC+ to Double Its Oil Production Quota in Six Years

Iraq asked OPEC+ on August 21, the alliance of the Organization of Petroleum Exporting Countries and its allies, to double its crude production quota, from roughly 4 to between 8 and 10 million barrels per day (mb/d) over six years. Prime Minister Ali Faleh al-Zaidi announced at the Baghdad Dialog conference that he had sent a delegation to Saudi Arabia, led by the Oil and Finance ministers, to negotiate the increase, BNN Bloomberg reported.

Iraq was among the producers hardest hit by the effective closure of the Strait of Hormuz, through which roughly one-fifth of the world's oil and liquefied natural gas (LNG) passed before the conflict that began on February 28, Reuters reported. The request comes amid OPEC+'s independent capacity reassessment process, commissioned from Texas-based consultancy DeGolyer and MacNaughton, whose results will be delivered to the group's Secretariat at the end of September. Based on that audit, negotiations will begin on the new 2027 quota baselines: a higher baseline translates into a greater permitted volume, making the process typically contentious.

The plan also hinges on resolving the country's maritime crude export routes. The pipeline to Ceyhan, Turkey, the country's only operational export route, carries roughly 170,000 barrels per day. Al-Zaidi said Iraq is working on alternative routes through the ports of Baniyas, Syria, and Aqaba, Jordan; the pipeline to Baniyas would require around four years of construction and at least $15 billion, according to sources cited by Reuters. "Iraq fought against the Islamic State on behalf of the region and the world. It is only fair that it receive an export share proportional to its population and reserves," al-Zaidi said, as cited by Energía a Debate. The negotiation will determine whether this reassignment ranks among the largest since the pandemic-era cuts.

OPEC+ will set new 2027 quota baselines based on the DeGolyer and MacNaughton audit, to be released at the end of September. The outcome will influence global supply and the Brent crude price, the international oil benchmark that Mexico monitors for its fuel imports.

This article was drafted with artificial intelligence assistance from verified sources and reviewed by a human editor before publication.