Faced with an economic disaster, the Iraqi government is seeking to maximize revenues from its key source of finance: oil. But with production capped at nearly 1mn b/d below its previous peak under the terms of the Opec+ production agreement (MEES, 6 November), the government has little room to maneuver.

In a bid to maximize oil sector revenues the government has decided to split Iraq’s flagship Basrah Light crude grade into two discrete grades through the launch of a new grade, Basrah Medium. This is not a new plan and the two previous administrations both supported it, but few expected implementation before 2022. (CONTINUED - 1070 WORDS)