Page 9 - MEOG Week 30 2021

MEOG PERFORMANCE MEOG

Iraq reports higher revenues

despite export drop

IRAQ IRAQ’S state oil marketer SOMO this week Total combined output numbers for June are
announced that despite a small drop in federal not yet available, but having produced 3.879mn
oil exports, revenues rose above $6bn for the bpd in May, its quota under the OPEC+ agree-
month, supported by higher oil prices. ment rose to 3.954mn bpd in June, rising further
SOMO had said earlier that exports averaged to 4.016mn bpd in July.
2.892mn barrels per day in June, down slightly Higher oil prices have provided respite for
from the 2.899mn bpd recorded in May, when Baghdad, which spent several months running
revenues stood at $5.917bn. a monthly deficit of billions of dollars.
With the average realised oil price increas- In late March, the Iraqi Cabinet passed an
ing from $65.84 to $70.8 per barrel from May to agreement pegging the 2021 budget at IQD130
June, revenues swelled to $6.143bn. trillion ($89.65bn) with the deficit estimated at
Of the total, 2.79mn bpd of exported crude IQD28.7 trillion ($19.79bn). With the country
was produced from the country’s giant southern 97%-reliant on oil exports, the budget is based
fields and loaded at Gulf terminals at Basra and on an oil price of $45 per barrel with total exports
Khor Al-Amaya, with the remaining 102,500 averaging 3.25mn bpd.
bpd produced from the fields around Kirkuk in As in previous budgets, the KRG will receive
the north and piped to the Turkish port of Cey- 12.67% of the total, with this contingent on it
han for export via the Mediterranean. handing over the net revenues from 250,000 bpd
These volumes exclude oil produced and of oil exports to SOMO and giving the revenues
exported by the Kurdistan Regional Govern- to the central treasury.
ment (KRG) that in May ran at around 470,000 However, no budget payments have yet been
bpd. made as controversy about independent Kurdish
Oil from the north is mainly produced by export continues to rumble on. Notable progress
the state-owned North Oil Co. (NOC), which appeared to have been made earlier this month,
has a combined production capacity of around though, when the federal government paid an
370,000 bpd from Baba Gurgur, Bai Hassan and IQD200bn ($138mn) advance to Erbil to cover
the Kirkuk oilfield’s Avana Dome. the salaries of civil servants.™

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