IRAQ DATA: January crude output 50,000 b/d below OPEC+ quota: SOMO

London — Iraq produced 3.807 million b/d of crude in January, including from the semi-autonomous Kurdistan region, the country's State Oil Marketing Organization said Feb. 3, as it took criticism from an OPEC+ monitoring committee for its lax quota compliance.

The January figure puts Iraq comfortably below its OPEC+ production quota of 3.857 million b/d, which is effective through March.

According to data compiled by the OPEC+ Joint Ministerial Monitoring Committee and seen by S&P Global Platts, Iraq overproduced its quota by a cumulative 626,000 b/d from May through December 2020, which it is required to make up through so-called "compensation cuts" by March.

In a statement, SOMO said its January overcompliance means it has 576,000 b/d of compensation cuts remaining.

The OPEC+ alliance, composed of OPEC, Russia and eight other production countries, uses six independent secondary sources, including Platts, to monitor member production. Platts will release its January OPEC+ production survey on or around Feb. 8.

"Iraq remains resolute in the core Declaration of Cooperation objectives of rebalancing the market and achieving much needed sustainable stability," Iraq's energy ministry said in a statement distributed by OPEC after the JMMC met Feb. 3.

"The attainment of 100% conformity from all participating countries, and compensating for overproduced volumes, is both fair and equitable to all participating countries in the DoC."

Iraq struggled for most of 2020 to comply with its OPEC+ quota amid a low oil price environment, the pandemic and a financial crisis gripping the country, drawing fire from other OPEC+ members.

At the JMMC meeting, Saudi energy minister Prince Abdulaziz bin Salman had called out Iraq and Kazakhstan for not implementing their compensation cuts.

"I also hope that Iraq will finish this procedure soon and we will organize a big celebration on this occasion," said the prince, who co-chairs the JMMC with Russian Deputy Prime Minister Alexander Novak.

SOMO said federally controlled crude exports averaged 2.868 million b/d in January, while exports by the Kurdistan Regional Government were 397,000 b/d.

Federal refineries and power plants consumed 520,000 b/d, and KRG consumption was 22,000 b/d, according to KRG plans audited by Deloitte, SOMO said.

Adding the figures together results in Iraq's January production figure of 3.807 million b/d, SOMO said, indicating no stock changes in the month.

KRG officials did not respond to queries to confirm the figures attributed to Kurdish exports and consumption.