Saturday, 08 August, 2020

Iran fully complying with OPEC+ quotas: EX-Governor

A former Iranian OPEC governor has rejected claims by authorities in crude-producing countries that Tehran’s output of oil has exceeded a limit set by the Organization of Petroleum Exporting Countries and allies, a grouping known as OPEC+.

Mohammad Ali Khatibi said on Thursday that Iran has remained fully committed to output quotas set by OPEC+ since April when the bloc moved to boost global oil prices amid the spread of the coronavirus pandemic.

“Currently, our total production, including barter, direct exports and exchanges as well as domestic consumption and storage is within the framework of the quotas,” Khatibi told the semi-official ILNA news agency.

The comments come amid reports suggesting that two key OPEC members Saudi Arabia and Kuwait have raised concerns about a potential deal between Iran and China whereby the Chinese would increase their purchase of Iranian oil products in return for heavy investment in the country’s oil and gas sector.

The reports come despite the fact that Iran has been exempt from rounds of OPEC+ cuts mainly because its direct sale of oil has declined significantly since 2018 when the United States imposed its unilateral sanctions on the country.

Khatibi said, however, that Iran will continue to commit to OPEC+ cuts even if it decides to increase its current output under energy deals with other countries.

“If Iran reaches a contract with any country for increase of production (it) will produce within the framework of OPEC rules,” he said.

The former official also elaborated on recent statements by Iranian energy authorities suggesting that the country is seeking to more than double its oil production capacity to reach an output target of 8.5 million barrels per day.

He said OPEC and allies have no restrictions on plans by member states to increase their capacity, adding that what matters most for the bloc is the actual production which includes the oil consumed domestically and the output of products like liquid gas and condensates.

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