Iraq is ramping up oil exports to boost state revenues, while carefully navigating tensions with OPEC+ over production limits.
On Sunday, the country’s state oil marketer, SOMO, confirmed that it has eased voluntary cuts under the OPEC+ agreement, allowing exports to rise.
OPEC+ Production Increases
Earlier this month, eight OPEC+ members agreed to raise production by 137,000 barrels per day from October.
This decision continues the gradual unwind of cuts that have supported oil prices since April.
SOMO’s director general, Ali Nizar Al-Shatari, explained that the increase could bring hundreds of millions of dollars in additional revenue.
He added that an extra 200,000 barrels per day would significantly strengthen government coffers, although he did not disclose exact figures.
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In August, Iraq exported an average of 3.38 million barrels per day, and SOMO expects exports to rise slightly in September, reaching between 3.4 million and 3.45 million barrels per day.
Balancing Quotas And Revenue
Meanwhile, Prime Minister Mohammed Shia al-Sudani urged OPEC+ to revisit Iraq’s export quota so it better reflects the country’s production capacity.
As OPEC’s biggest overproducer, Iraq faces pressure to cut output after exceeding its agreed limits.
In response, the government submitted plans in April to reduce production and comply with the group’s targets.
Ultimately, Iraq is testing how far it can push exports to maximise revenues while staying on OPEC+’s good side, and the coming months will reveal whether it can maintain this delicate balance.
