During the month of July, Iraq’s oil production fell to as low as 1.43 million barrels per day, as a result of frequent power outages that crippled numerous pumping stations across the country. The country’s usual production capacity stands at 2.2 million bpd, according to AFP news agency.
Iraq has been suffering a severe drought for the last three years which consequently decreased the power Iraq has been able to generate from hydro units for use in the oil sector.
The lack of power in the Kirkuk district has lead to a particularly sharp drop in Kirkuk crude exports in the second half of the month of July.
According to a report in MEES, corruption charges of several former senior power officials have further deteriorated the oil sector in the country. The charges have caused fear among new senior officials from taking initiatives.
On June 4, Iraq froze for a period of five weeks its food-for-oil exports in protest of the Security Council’s decision to change the usual six-month extension of the program to a set of one-month rollovers.
After reaching a deal with the United Nations for a 150-day extension of the program on several conditions, Iraq agreed to resume its oil exports.
Iraq is one of the 11 members of Organization of Petroleum Exporting Countries (OPEC), yet since the 1991 Gulf War, it is not part of the cartel's quota system. The country has oil reserves of approximately 112 billion. —(Mena Report)
© 2001 Mena Report (www.menareport.com )