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Iraq's Oil Ministry said Thursday that reports suggesting Baghdad was considering leaving OPEC do not reflect the government's official position, reaffirming its commitment to the producer group while continuing to seek a higher production quota.
"The reports circulated regarding Iraq threatening to end its membership in OPEC do not reflect the official position of the Iraqi government," the ministry said in a statement, adding that neither Prime Minister Mohammed Shia al-Sudani nor the government had raised the issue of withdrawing from the organization.
The clarification followed a Reuters report citing a senior Iraqi Oil Ministry official as saying Iraq would be compelled to consider "all available options" if its OPEC production quota was not significantly increased.
Reuters also reported that Iraqi officials had previously considered leaving OPEC but that the current plan was to remain within the organization while seeking a higher output allocation.
The ministry said Iraq has consistently emphasized the importance of reassessing production ceilings to better reflect the sustainable production capacities of member states, in line with agreements previously reached among OPEC countries and taking into account Iraq's security and economic circumstances.
It also stressed that OPEC members have shown "a high level of understanding" of Iraq's unique circumstances, including more than four decades of wars, sanctions and security challenges, most recently damage to parts of the country's oil infrastructure caused by terrorist attacks.
This understanding should be reflected in a fair production level that would allow Iraq to regain its position as OPEC's second-largest producer while supporting ongoing investment and modernization across the country's oil industry, which remains the backbone of state revenues, the statement noted.
A founding member of OPEC, Iraq relies on crude exports for about 90% of government revenue. Earlier, Bloomberg also quoted Iraqi Oil Ministry spokesperson Salim Farhoud as saying Iraq had no current intention of leaving OPEC and remained committed to working within the organization's framework and mechanisms.
However, he said Iraq expected its production quota to be raised in line with its capacity and economic needs, warning that otherwise Baghdad would eventually have to decide whether to remain in the organization or withdraw.
The debate over Iraq's production quota comes as the country seeks to restore oil output following disruptions caused by the recent Middle East conflict. Before the war began on Feb. 28, Iraq produced around 3.3 million to 3.5 million barrels per day, with most exports shipped through the Strait of Hormuz.
The issue has also taken on greater significance after the United Arab Emirates became the first major Gulf producer to leave OPEC in May in nearly six decades, citing national interests and seeking greater freedom from the group's production quotas.
Last week, Oil Ministry spokesperson Salim Farhoud said Iraq was working to restore production to more than 3 million barrels per day within two months after output fell to around 1.3 million barrels per day during the conflict. He said operating companies had already begun ramping up production at affected fields as conditions improved.
OPEC+, which includes OPEC members and allies such as Russia, has been gradually increasing production targets in recent months as oil markets stabilize following the regional conflict.
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