"Iraq will agree and cooperate if producers really want to cooperate to cut," Adel Abdul Mahdi told reporters in Baghdad. Adel Abdul Mahdi has agreed to allow any decision by OPEC and non-OPEC members when considering a cut in crude production. This decision aims to boost profits and revive its national oil company amidst the twelve year low in global oil prices at $30 a barrel.
National Oil Company will also be re-established after it merged with the ministry in 1987 as the Minister says it will be "vital for the development of the energy sector" and called for it to independently operate outside the jurisdiction of the Ministry of Oil.
Abdul Mahdi says Southern oil exports from January 24th reached an average of 3.324 barrels per day with production at 3.7 million barrels per day.
This will further diversify the oil revenue for Iraq, it’s only source of income, that has struggled as Iraq funds wars and the plummeting of global oil prices.
A Chinese company and other foreign firms have now signed a deal in Beijing to form a syndicate, the main companies being China Petroleum Pipeline (CPP) and private company Mass Global, to jointly invest money to build an oil pipeline connecting the southern city of Basra with Aqaba port on Jordan's Red Sea coast. "The two companies will submit their investment offer to the oil ministry in March," said Ministry spokesman Asim Jihad
150,000 bpd out of one million barrels per day are expected to be exported to Jordan’s Zarga refinery. This plan has gained positive momentum despite a failed venture in 2013 when Iraq pre-qualified 12 companies to build a $18 billion dollar export pipeline to Jordan after security concerns arose.