Ihsan Abdel-Jabbar, Iraqi Oil Minister, confirmed on Sunday that his country could stop importing Iranian gas in 2024 if all of its gas projects were completed as scheduled.
The Iraqi minister expected that oil revenues in June would reach about $ 2.5 billion, including about $ 500 million that would be paid as costs to international companies.
Iraq agreed earlier Sunday with large oil companies managing giant oil fields in the south of the country to further reduce crude oil production in June.
Baghdad aims to reinforce its commitment to targeted cuts in its oil production under a global agreement with OPEC and its allies to cut oil production.
And Iraq informed OPEC that it would start an urgent plan to gradually reduce its oil production to fully comply with its share after the organization demanded the commitment of Baghdad and other producers sluggish by an agreement to reduce production.
Abdul-Jabbar expected oil prices to exceed $ 40 a barrel in the second half of 2020.
He pointed out that the ministry asked the Kurdistan Region authorities to export a maximum of 370,000 barrels per day, as of June, to help Iraq comply with the OPEC + quota.
The Iraqi Oil Minister explained that the arrears that Iraq must pay to Lukoil amount to about 140 million dollars so far.
Iraq agreed with the Russian company Lukoil to start an additional reduction of 50 thousand barrels per day starting from June 13 to reduce production from the West Qurna 2 oil field to about 275 thousand barrels per day.
Lukoil cut production by 70,000 bpd in May in response to a request from the Iraqi Oil Ministry, two directors of Iraqi oil fields told topnewslink Sunday.
Abdul Jabbar confirmed that almost all foreign companies responded positively to a request to review the terms of their service contract, but one company refused.
According to two managers of Iraqi oil fields overseeing production operations, the government-run Basra Oil Company has asked BP to reduce production from the Rumaila oil field by about 140,000 barrels per day of its total production, which ranges from 1.4 million to 1.45 million barrels per day.
The managers added that Exxon Mobil had also agreed to cut an additional 70,000 bpd from the West Qurna 1 field to cut production to around 350,000 bpd in June.
The Iraqi oil minister added that it is in the interest of Iraq to abide by the OPEC + production cut agreement, stressing that Iraq will export 2.8 million barrels per day on average in June.
"We will continue to reduce production gradually to comply with the OPEC share," an Iraqi oil official told Topnewslink.
OPEC, Russia and allies agreed on June 6 to extend record cuts in oil production until the end of July, extending an agreement that helped increase crude prices to double in the past two months by withdrawing about 10% of global supply from markets.
The group known as OPEC + also asked countries like Nigeria and Iraq, which exceeded production quotas in May and June, to compensate for this with additional cuts during the period from July to September.