SUBSCRIBE
PROFILE

Iraq acknowledges overproduction in OPEC+ and promises compensation

Iraq acknowledged that it had produced 184,000 barrels per day (b/d) above its OPEC+ quota in June, and pledged to offset this surplus by September 2025 through further production cuts.

Share:

Compensation surproduction OPEC+ Irak

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access • Archives included • Professional invoice

SUBSCRIBE - 99£/year

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Iraq, OPEC’s second largest oil producer, has regularly exceeded its OPEC+ quota, causing irritation among other alliance members. In a statement, the Iraqi Oil Ministry affirmed its full commitment to the agreement and voluntary adjustments, promising to compensate for any overproduction since the start of 2024.
In June, Iraq cut production by 60,000 b/d to 4.22 million b/d, according to the latest OPEC+ survey by S&P Global Commodity Insights. However, despite a reduction in crude oil exports to 3.299 million b/d, total production, including refining, direct combustion for power generation, inventory movements and production in the semi-autonomous Kurdistan region, exceeded quota.

Kurdish production challenges

The Iraqi federal government and the Kurdistan Regional Government (KRG) are at odds over sovereignty over Kurdish oil production, which has led to the closure of the export pipeline to the Turkish port of Ceyhan since March 2023. Prior to this closure, Kurdish production was around 400,000 b/d. Around 50,000 b/d of federal Kirkuk grade production was also prevented from being exported due to the pipeline closure.

Compensation and compliance perspectives

Iraq, Kazakhstan and Russia are the three OPEC+ members required to submit compensation plans for exceeding their quotas throughout 2024. The Kazakh Energy Ministry announced on July 8 that it would submit an updated plan following the publication of June production data in the OPEC monthly report on July 10. Russia has not yet commented on its compensation plans.
The OPEC+ Joint Ministerial Monitoring Committee, co-chaired by Saudi Arabia and Russia, is due to meet online on August 1 to assess members’ quota compliance, and may also recommend changes to OPEC+ production policy. The full OPEC+ alliance will meet on December 1.
Iraq’s oil production management and its relationship with the KRG will continue to be critical factors in OPEC+ quota compliance and global oil market stability. Compensation commitments and future production adjustments will play a crucial role in balancing oil supply and demand, thus impacting world oil prices.

  • Popular on energynews.pro
Green Growth and K2 convert a FIT solar plant to FIP with storage
The CRE assesses the gradual restart of retail energy markets
Berlin approves strategic minority stake in TenneT Germany
Bangladeshi court suspends arbitration with Adani Power over unpaid invoices
Lukoil puts pressure on Sofia to finalise refinery divestment
Washington launches new sale of 80 million offshore oil acres
US authorities will hold a large offshore oil block sale in the Gulf of America in March, covering nearly 80 million acres under favourable fiscal terms.
Sinopec to invest $437 million in hydrotreatment unit in Algeria
Sonatrach awarded Chinese company Sinopec a contract to build a new hydrotreatment unit in Arzew, aimed at significantly increasing the country's gasoline production.
Chevron in advanced talks to acquire Lukoil’s international assets
The American major could take over part of Lukoil’s non-Russian portfolio, under strict oversight from the U.S. administration, following the collapse of a deal with Swiss trader Gunvor.
Lukoil shuts down 430 petrol stations in Finland under US sanctions pressure
Finnish fuel distributor Teboil, owned by Russian group Lukoil, will gradually cease operations as fuel stocks run out, following economic sanctions imposed by the United States.
Exxon to close its ethylene plant in Scotland amid market pressures
ExxonMobil will shut down its Fife chemical site in February 2026, citing high costs, weak demand and a UK regulatory environment unfavourable to industrial investment.
Orlen acquires 7.6% of Ekofisk project as DNO reallocates assets
Polish state-owned group Orlen strengthens its North Sea presence by acquiring DNO’s stake in Ekofisk, while the Norwegian company shifts focus to fast-return projects.
Syria signs strategic oil deal with ConocoPhillips and Nova Terra Energy
The Syrian Petroleum Company has signed a memorandum of understanding with ConocoPhillips and Nova Terra Energy to develop gas fields and boost exploration amid ongoing energy shortages.
Fincraft offers revised C$1.75 per share bid to acquire Tethys Petroleum
Fincraft Group LLP, a major shareholder of Tethys Petroleum, submitted a non-binding proposal to acquire all remaining shares, offering a 106% premium over the September trading price.
China increases crude oil stockpiles in October as prices stabilise
As global oil prices slowed, China raised its crude stockpiles in October, taking advantage of a growing gap between imports, domestic production and refinery processing.
Kuwait Petroleum Corporation secures record KWD1.5bn loan to support expansion strategy
Kuwait Petroleum Corporation has signed a syndicated financing agreement worth KWD1.5bn ($4.89bn), marking the largest ever local-currency deal arranged by Kuwaiti banks.
Benin receives offshore unit to relaunch the Sèmè oil field
The Beninese government has confirmed the availability of a mobile offshore production unit, marking an operational milestone toward resuming activity at the Sèmè oil field, dormant for more than two decades.
Baghdad seeks to preserve oil production despite sanctions targeting Lukoil
The Iraqi Prime Minister met with the founder of Lukoil to secure continued operations at the giant West Qurna-2 oil field, in response to recent US-imposed sanctions.
Pertamina increases imports to meet gasoline demand
The sustained rise in consumption of high-octane gasoline pushes Pertamina to supplement domestic supply with new imported cargoes to stabilise stock levels.
CRR acquires 53 km of oilfield road infrastructure from Islander in Alberta
Canadian group CRR acquires a strategic 53-kilometre road network north of Slave Lake from Islander Oil & Gas to support oil development in the Clearwater region.
Kazakhstan denies any plan to acquire Lukoil’s local assets
Kazakhstan’s energy minister dismissed any ongoing talks between the government and Lukoil regarding the potential purchase of its domestic assets, despite earlier comments from a KazMunayGas executive.
OPEC and GECF warn of structural deficit in global energy market
OPEC and the Gas Exporting Countries Forum warn that chronic underinvestment could lead to lasting supply tensions in oil and gas, as demand continues to grow.
Popular support for oil exploration rises sharply in Norway
A national barometer shows that 62% of Norwegians support maintaining the current level of hydrocarbon exploration, confirming an upward trend in a sector central to the country’s economy.
ShaMaran delivers first “in kind” cargo to Ceyhan under new Iraqi federal framework
ShaMaran has shipped a first cargo of crude oil from Ceyhan, marking the implementation of the in-kind payment mechanism established between Baghdad, Erbil, and international oil companies following the partial resumption of exports through the Iraq–Türkiye pipeline.
TGS launches 14,800 km² seismic survey in Brazil’s Pelotas Basin
Norwegian group TGS begins Phase I of its multi-client seismic survey in the Pelotas Basin, covering 21 offshore blocks in southern Brazil, with support from industry funding.
Chandra Asri secures $750mn from KKR to acquire Exxon’s fuel stations in Singapore
Indonesian group Chandra Asri receives a $750mn tailor-made funding from KKR for the acquisition of the Esso network in Singapore, strengthening its position in the fuel retail sector.

All the latest energy news, all the time

Annual subscription

8.25£/month*

*billed annually at 99£/year for the first year then 149,00£/year ​

Unlimited access - Archives included - Pro invoice

START - 99£/year

Monthly subscription

Unlimited access • Archives included

5.2£/month*
then 14.90£ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.