Shafaq News- Baghdad
European officials are expected to visit Baghdad in the coming weeks for talks on energy and economic cooperation, informed Iraqi sources told Shafaq News on Thursday, hours after reports suggested Iraq could consider leaving OPEC over production quotas.
The visits would focus on partnerships to develop Iraq's oil, gas, and electricity sectors, including projects to capture associated gas, boost power generation, expand storage capacity, and strengthen export infrastructure, a government source revealed, adding that one proposal aims to help Iraq achieve self-sufficiency in associated gas within two years, while discussions also include plans for a joint maritime fleet with several countries, including the United States, to support crude oil exports.
Oil Ministry spokesman Salim al-Rikabi warned earlier that Iraq could withdraw from the Organization of the Petroleum Exporting Countries (OPEC) unless its production quota is increased to reflect the country's output capacity and future needs.
Separately, market analyst Jules Reimer said Iraq's threat to leave OPEC appeared to be a calculated move aimed at securing greater production flexibility. Writing for MarketWatch, Reimer said Iraq's departure would have a greater impact on global oil markets than the exits of Qatar in 2019 and the United Arab Emirates in 2026, given that Iraq is OPEC's second-largest producer after Saudi Arabia, pumping around 4.5 million barrels per day (bpd).
He added that, according to estimates by the US Energy Information Administration (EIA), Iraq could raise production to seven million bpd by 2029 if OPEC quotas no longer constrained it.
Reimer also noted that any expansion of Iraq's oil sector could benefit major US energy companies, including Exxon Mobil, Chevron, and Halliburton, while warning that the loss of a founding OPEC member could undermine confidence in the group's ability to manage global oil supplies and prices.
