Iraq asks KRG to cut production by 120,000 bpd - state news agency

CAIRO (Reuters) - Iraq’s federal government has requested that the Kurdistan Regional Government (KRG) cut its oil production by 120,000 barrels per day (bpd), Iraq’s state news agency INA quoted a KRG minister as saying on Wednesday.

The semi-autonomous Kurdistan Region of Iraq’s domestic oil consumption is at 30,000 bpd, INA quoted Khaled al-Shawani, the KRG minister responsible for dealing with Baghdad, as saying.

Baghdad and the Kurds are discussing several scenarios for an agreement over production cuts, al-Shawani said.

Iraqi Oil Minister Ihsan Abdul Jabbar had said last week that the KRG is still exporting oil without consulting the federal government.

The Organization of the Petroleum Exporting Countries and allies, a grouping known as OPEC+, are currently cutting output by 7.7 million bpd to support prices as the coronavirus crisis hammers demand.

Iraq relies almost entirely on oil for its state revenue.

Reporting by Alaa Swilam, Writing by Ahmed Aboulenein; Editing by Sandra Maler and Lisa Shumaker