OPEC+ countries that have not fulfilled their obligations have submitted terms of compensation for production

All OPEC+ countries, which did not fulfill their obligations to reduce oil production in May, presented compensation schedules for their "shortfalls,” Angi reports.

Materials will be presented over the coming months.

During the last meeting of the OPEC+ Joint Ministerial Monitoring Committee (JMMC), it was stated that in May the OPEC+ deal was executed at 87%, the market received 1.26 million bps more than expected. At the same time, OPEC countries fulfilled their obligations by 84% - an excess of 0.97 million bpd, and non-OPEC countries – by 92% - 29 million bpd.

According to the OPEC report, the most serious violators of the agreement in May were Congo (72%), Angola (71%), Nigeria (57%), Iraq (46%), Gabon (5%)

During the last meeting of all OPEC+ ministers in early June, it was stated that the continuation of the deal was due to 100% fulfillment of obligations and compensation that countries did not fulfill.

Iraq and Kazakhstan submitted their plans to compensate for unfulfilled obligations to reduce oil production to JMMC.

The deal to reduce oil production by OPEC+ countries, concluded in early April, assumes that in May-June production cuts will amount to 9.7 million bpd (23% of the level of October 2018, separate reference bases are set for Russia and Saudi Arabia), from June, it was supposed to slightly relax restrictions – 7.7 million bpd (by 18%), and from the beginning of 2021 to May 2022 it is planned to reduce production by 5.7 million bpd (by 14% of the base).

Earlier it was reported that Iraq wanted to reduce the dependence of the budget on oil.

Tags: contracts, oil, hydrocarbon production, legislation, EU, USA, energy market, Asia, добыча нефти, drilling, coronavirus, RF, foreign affairs, OPEC+, OPEC, price, agreement, volumes, oil products, energy sector, quarantine, Brent, WTI, pandemic, Saudi Arabia, COVID-19, energy security, decline in production, oil companies, oil reserves, crisis, economy, market, oil and gas industry, oil production

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