The OPEC+ countries, including Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman, emphasised in a recent meeting their collective resolve to ensure full compliance with voluntary production cuts announced in April and November of 2023.
Iraq and Kazakhstan, who have overproduced since January 2024, strongly reaffirmed their commitment to the agreement and to their compensation schedules submitted to the OPEC Secretariat as agreed under the 53rd meeting of the JMMC in April 2024.
In August 2024, Saudi Arabia, Russia, the United Arab Emirates, Kuwait, Algeria, and Oman, conducted two ministerial discussions with Iraq and Kazakhstan.
Both countries were urged to achieve full conformity and compensate for the overproduced volumes since January 2024.
Iraq and Kazakhstan committed to engage with secondary sources to outline their plans for production adjustments to achieve compliance and meet the compensation schedules they submitted to the OPEC Secretariat in August.
Iraq and Kazakhstan reinforced their commitment during the OPEC Secretary General’s visits in late August, conducted in coordination with Saudi Arabia’s Minister of Energy and the Chairman of the OPEC and non-OPEC Ministerial Meetings.
During those visits, the OPEC Secretariat organised workshops with the secondary sources where both countries provided extensive details on the immediate and concrete measures they are implementing to achieve full conformity with the required production levels and to meet their compensation schedules for August and for September.
These measures included advancing field maintenance plans and reducing production alongside with delaying and cancelling spot sales for the month of August.
Moreover, the countries committed to adjust compensation plans for any over produced volumes in August.
In recognition of this strengthened resolve and renewed firm commitment, the eight participating countries have agreed to extend their additional voluntary production cuts of 2.2 million barrels per day for two months until the end of November 2024, after which these cuts will be gradually phased out on a monthly basis starting 1 December 2024, according to the attached schedule, with the flexibility to pause or reverse the adjustments as necessary.
The overproducing countries also reconfirmed their commitment that the entire overproduced volume will be fully compensated for by September 2025.
