2020-10-06 15:40:00
IRAQ'S OIL EXPORTS UP
PLATTS - 05 Oct 2020 - Iraq's total oil exports in September, including from the semi-autonomous Kurdish region, rose 1.3% from August led by higher Kurdish output, according to official ministry figures and export data for the Turkish port of Ceyhan report issued by local shipping agents.
OPEC's second-largest oil producer saw exports edge up to 3.063 million b/d in September from 3.023 million b/d in August, which was the lowest export rate since March 2015, data showed.
Exports included 2.613 million b/d under the auspices of the federal government, up from 2.597 million b/d in August, oil ministry figures showed, and 450,000 b/d from the Kurdish region, which is 5.6% higher than August's 426,000 b/d, according to the shipping report.
Iraqi officials, including deputy prime minister Ali Allawi, have accused the Kurdistan Regional Government of failing to adhere to OPEC+ output cuts, prompting the federal government to make up for overproduction in the semi-autonomous region.
The KRG denied accusations that it was not complying with the cuts in a Sept. 24 statement.
August compliance
Baghdad and Erbil had agreed to share the OPEC + production cuts proportionally, but figures from state-owned SOMO show the KRG achieved just 79% compliance with its quota in August, while the federal government hit 102%, according to official data released Sept. 10.
Iraq, which overproduced between May and July, had pledged to make up for its non-compliance by implementing extra cuts of 400,000 b/d in August and September.
Iraq lowered its crude oil output in August to 3.578 million b/d, SOMO figures showed Sept. 10, but remained above the 3.404 million b/d it had pledged to hold production to under the OPEC+ supply accord during that month.
Compensation cuts
However, the OPEC+ alliance has received plans from quota busters, including Iraq, to implement extra reductions until the end of 2020. Of the 2.375 million b/d of so-called "compensation cuts," the largest volume will come from Iraq, whose 698,000 b/d of catch-up cuts will be divided into 203,000 b/d in September and 165,000 b/d in October, November and December, according to an internal document seen by S&P Global Platts.
The Gulf terminals federal exports included 1.787 million b/d (72%) of Basrah Light oil with average gravity of 29-31 API and 713,000 b/d (28%) of Basrah Heavy oil with average gravity of 23-24 API.
Iraq raked in $3.167 billion from sales in September, selling its oil at an average price of $40.407/b, compared with $3.49 billion in August at $43.384/b.
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Earlier:
2020, October, 1, 13:40:00
OPEC+ CUTTING COMPENSATION 2.375 MBD
OPEC and 10 allies, including Russia, are in the midst of a historic production cut accord aimed at helping the oil market recover from the COVID-19 pandemic. The curbs initially started at 9.7 million b/d for May-July, before tapering to 7.7 million b/d from August through the end of the year.
2020, September, 25, 13:00:00
OPEC+ IRAQ REDUCING
OPEC’s second-biggest producer, Iraq has failed in the past to fully comply with OPEC+ oil output reductions,
2020, September, 24, 12:20:00
OPEC+ REBALANCING: 2021
The OPEC+ agreement, along with declines in production elsewhere, including the United States, brought global supply lower than the level of global demand for the first time since mid-2019.
2020, September, 18, 12:25:00
OPEC RESTORES BALANCE
Energy minister Alexander Novak said Russia "greatly values cooperation with OPEC," and that while overall compliance with the cuts is high, "I would like to urge everyone to view this very seriously and stick to the high level of conformity we were able to achieve."
2020, September, 11, 12:20:00
OPEC+ PRODUCTION CUT
The OPEC+ agreement called for a decrease in crude oil output by a combined 9.7 million b/d in May and June, a combined decrease of 9.6 million b/d in July 2020, and a combined decrease of 7.7 million b/d in August
2020, September, 11, 12:15:00
IRAQ OIL PRODUCTION DOWN
Iraq's habitual non-compliance with its production quota has been a sore point within the OPEC+ alliance, with Saudi Arabia, Russia and others pressuring Iraq to improve its performance.
2020, September, 10, 14:20:00
IRAQ'S OIL REFINERY $4 BLN
Iraq imports gasoline and diesel to meet its needs and many of its refineries are either old, dilapidated or were damaged during the 2013-2017 war against the Islamic State.
