US official suggests Iraq to reject OPEC quota

19 May 2003
Conflicting signals emerged on 17-18 May regarding the thorny issue of the role of post-Saddam Iraq in OPEC. Philip Carroll, the former head of the Royal Dutch/Shell Group's US operations, appointed by Washington to head an Iraqi oil ministry advisory board, appeared to suggest that Iraq would not accept any production limits. 'Historically, Iraq has had, let's say, an irregular participation in quota systems,' Carroll said in an interview with the Washington Post. 'They have from time to time, because of compelling national interest, elected to opt out of the quota system and pursue their own path -They may elect to do that same thing.' However, he emphasised that the decision would be taken by a new Iraqi government and not by the US. 'In the final analysis, Iraq's role in OPEC or in any other international organisation is something that has to be left to an Iraqi government.' Carroll said that the immediate priority was to combat fuel shortages and then to work on restoring Iraqi exports to their prewar level to provide funds for reconstruction. The sentiment was echoed by Thamir Ghadhban, appointed earlier in the month as chief executive of the interim management team for the oil sector. 'All our attention is 100 per cent focused on how to provide gasoline and liquefied petroleum gas (LPG) to the people and fuel to the power stations,' he told Reuters. 'We have no time whatsoever to think or talk about OPEC or OPEC membership.' His colleague Shamkhi Faraj denied any plan to leave or disrupt OPEC. 'We are not for leaving OPEC,' he said. 'On the contrary, we are for strengthening OPEC and its position in the market.'

Iraq is pumping about 200,000 barrels a day (b/d) at present, compared with prewar output of about 2.5 million b/d. On 19 May, in a separate interview with Reuters, Ghadhban said that continuing security problems had forced a revision of production targets, with mid-July now the aim for output to reach 1.3 million b/d. 'In some areas it is getting worse rather than better,' he said. 'What we anticipate on production may not be attainable if the security situation makes repairs impossible.' The situation is worst in the south of the country. The southern Rumailla field is pumping only 80,000 b/d.

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