Key facts
- Iraq has threatened to withdraw from OPEC if the group does not grant it a higher production quota.
- European officials are scheduled to visit Baghdad for energy cooperation talks.
- Discussions will cover projects to capture associated gas, increase power generation, and expand energy storage.
- Iraq aims to achieve self-sufficiency in associated gas production within two years.
- Iraq is OPEC's second-largest producer, pumping approximately 4.5 million barrels per day.
Iraq has issued a warning that it may leave OPEC if the organization does not grant the country a higher production quota, a move that comes as European officials are expected to visit Baghdad for high-level energy cooperation talks.
According to Iraqi sources, the upcoming discussions will focus on expanding cooperation across Iraq's oil, gas, and electricity sectors. Key projects under consideration include capturing associated gas, increasing power generation capacity, enhancing energy storage, and strengthening crude export infrastructure. One proposal aims to help Iraq achieve self-sufficiency in associated gas production within two years, thereby reducing its reliance on imported fuels.
Market analyst Jules Reimer noted that Iraq's potential departure from OPEC would have significant consequences, given its position as the second-largest producer after Saudi Arabia, currently pumping around 4.5 million barrels per day. Reimer suggested that Iraq could increase its production capacity to approximately 7 million barrels per day by 2029 if OPEC production limits were lifted. Such a development would present substantial opportunities for international oil companies operating in Iraq, such as Exxon Mobil, Chevron, and Halliburton, and would also challenge OPEC's ability to influence global oil prices, especially as Iraq is a founding member of the cartel.