Reduced crude sales reflect ongoing efforts to comply with an OPEC-plus quota agreement, which has helped support global prices and Iraqi earnings.
Pivoting away from negotiations with ExxonMobil, Iraq is now putting the Ratawi oil field at the center of a prospective upstream, gas, and power deal with Saudi Arabia.
The field will initially target 50,000 bpd – about half the production level it averaged before shutting down amidst the coronavirus pandemic.
The government is seeking stopgap solutions to major blackouts that have sparked protests in southern Iraq.
In a meeting with senior Oil Ministry officials, Mustafa Kadhimi communicated his administration's energy sector priorities.
While the country's output is still over its quota, Iraq has now cut more than 600,000 bpd compared to its first-quarter production average.
Financial constraints and OPEC cuts led to oil sector layoffs and protests that briefly shut down access to Missan province's largest field.
Countrywide oil sales dropped by 11 percent, but higher oil prices – buoyed by an OPEC-plus quota agreement – yielded monthly revenue gains.
Production cuts and falling exports move Iraq closer to OPEC-plus quota compliance.
The KRG's production is falling as cash flows dry up and companies pare back investment.
