Iraq has slashed its oil production target for 2022 from 7 million barrels a day (b/d) to just 6.5 million b/d, in the latest in a long line of downgrades to production targets.
The Iraqi government announced in a statement that the cabinet approved of the plan on 1 April.
The country is currently producing 5 million b/d, according to Oil Minister Jabar al-Luaibi.
Political problems and lack of investment in new production forced Iraq to reduce its capacity expansion plan from 12 million b/d to 9 million b/d by 2018, before it set the more modest target of 7 million b/d by 2022.
Over the past year the value of active oil projects in Iraq slumped by 17 per cent, falling to $84bn in February 2017.
Dozens of oil projects in the country have either seen slower progress than expected, been put on hold, or cancelled.
Many companies operating in Iraq are dissatisfied with the contracts they signed with Baghdad and are engaging in drawn out negotiations as they put pressure on the government for more generous terms.
These companies include Russia’s Lukoil, UK-listed BP, US-based Exxon Mobil and Italy’s Eni.
Shell announced that it would be exiting Iraq’s Majnoon, one of the world’s largest oil fields, last year along with its partner Petronas.
Last week Iraq launched a new oil and gas block licensing round, making 11 blocks available to international oil companies.
The Oil Ministry has set April 15 as the deadline for companies to submit bids.
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