Iraq complied with Opec+ quota in December: Somo

Iraq's crude production remained in line with the previous month in December and in compliance with its output quota under the Opec+ agreement, according to state-owned oil marketer Somo.

Iraq produced 4.431mn b/d in December, which qualifies as its production ceiling for the month, and up by just 1,000 b/d from November output of 4.43mn b/d, according to Somo's figures.

Iraq's production is likely to fall in February, a source with knowledge of the matter told Argus, because of a planned 10-day maintenance shutdown of its 400,000 b/d West Qurna 2 field. The shutdown will result in an estimated 114,000 b/d decrease in the country's overall monthly production.

The Opec+ producer group opted at its most recent ministerial meeting in December to roll over the nominal 2mn b/d cut to production targets that ministers agreed at the previous meeting in October, which is due to last until the end of 2023. As the third largest producer in the group, Iraq was responsible for delivering 11pc of that cut.

Iraq's Opec representative Mohammad Saadoun Mohsen told Argus in October that Iraq planned to deliver its cut by limiting refinery runs rather than lowering exports.

Crude supplied to domestic refineries continued to drop, reaching 677,000 b/d in December, down from 720,000 b/d in November and 802,000 b/d in October, according to Somo.

The drop in Iraq's refining runs in December is also attributed to the shutdown of the 70,000 b/d Salahuddin 1 plant, part of the 300,000 b/d Baiji complex facility, as a result of scheduled maintenance, a source with knowledge of the matter told Argus.

Somo said there was also a small increase in Iraq's crude exports in December — to 3.749mn b/d from 3.678mn b/d in November, mostly attributed to an increase in exports from the northern Kurdistan region. These export figures include Kirkuk blend supplies sold by the Kurdistan Regional Government (KRG).

Jordan received a steady 10,000 b/d of Iraqi crude in December, in line with exports in November, Somo said.

Iraq's direct crude burn in December remained in line with the 15,000 b/d in November, compared with 25,000 b/d in October and 35,000 b/d in the summer months, as cooler weather reduced demand from power plants.

By Bachar Halabi