Iraq confirms its stay in OPEC and strengthens its partnership with America economy

Iraqi Prime Minister Ali al-Zaidi confirmed that his country will not withdraw from the Organization of the Petroleum Exporting Countries (OPEC), stressing Baghdad’s adherence to its membership in the organization, while continuing to demand a “fair and equitable” production share, in conjunction with the announcement of the imminent launch of a political and economic partnership with the United States and the signing of a new agreement to develop an oil field.

Al-Zaidi said, in a television interview broadcast by his media office, today, Thursday, that Iraq “is one of the founding countries of OPEC, and will not leave it, but we are seeking a fair and equitable share in production.”

This statement comes weeks after a report published by Reuters stated that Iraq was considering withdrawing from OPEC if the organization did not allow it to significantly increase its oil production, in light of Baghdad’s demands to reconsider production quotas in proportion to its economic needs.

Iraq is facing increasing financial pressure due to restrictions on production cuts within the OPEC Plus alliance, while the government believes that current production levels do not reflect the country’s oil potential nor the needs of its economy, which relies heavily on oil revenues.

The OPEC+ alliance decided at the beginning of the week to increase production by about 188,000 barrels per day in August, as part of a gradual plan to restore supplies to global markets.

Partnership with the United States

In another context, Al-Zaidi announced that Iraq will reveal “political cooperation and economic partnership” with the United States during his upcoming visit to Washington, later this month.

He said that Baghdad, which is keen to maintain a balance in its relations with both Iran and the United States, seeks to create a “state of rapprochement” between the two countries.

The announcement comes in light of the Iraqi government’s efforts to strengthen its economic relations and attract more foreign investments, while maintaining a policy of balance in its regional and international relations.

As part of plans to increase production capacity, the Iraqi government announced the signing of an agreement with the American company HKN Energy to develop the Hamrin oil field.

The government said that the project aims to raise the production capacity of the field to 140,000 barrels per day, in addition to producing 40 million standard cubic feet of gas per day, in a step aimed at enhancing oil and gas production and supporting the Iraqi energy sector.