The Organisation of Petroleum Exporting Countries (OPEC) has given Nigeria a Monday, June 22, 2020 deadline to submit a schedule of the oil production cut compensation plan.
The Joint Ministerial Monitoring Committee (JMMC) of OPEC+ on Thursday, noted that Nigeria and three other members have till Monday to lay plans on how they will comply with a deal to reduce production by 9.7 million barrels daily.
Other countries alongside Nigeria yet to submit their plans include Angola, Gabon and Azerbaijan and now have till Monday to do so, while other laggards Iraq and Kazakhstan, have taken steps to fulfill their obligations to the cartel.
A statement issued Thursday after the 19th Joint Ministerial Monitoring Committee (JMMC), which was held via video-conference, under the chairmanship of Saudi Arabia’s Minister of Energy, Prince Abdul Aziz Bin Salman, and co-Chair, Mr Alexander Novak, Minister of Energy of Russian, noted that sticking with the cuts as promised was the effective thing as prices had improved in the last month.
“Furthermore, the committee mandated the secretariat to reach out to all the underperforming participating countries to submit their schedules for compensation by the above mentioned date,” OPEC said.
It stressed that the attainment of 100 percent conformity from all participating countries was not only fair and equitable, but vital for the ongoing and timely rebalancing efforts and helping deliver a sustainable oil market stability.
It reiterated its earlier position to extend the first phase of the production adjustments by a further month, now till July 31, 2020, and subscribing to the concept of compensation by those countries who were unable to reach full conformity (100 per cent) in May and June.
OPEC added: “The committee took note of the overall conformity of 87 percent for the month of May 2020. It also observed individual country conformity levels and reiterated the critical importance that all participating countries achieve their 100 per cent level.
“They will also make up for any monthly shortfalls in the months of July, August and September. It welcomed the expressed commitments from those countries below the 100 percent May conformity level and specific compensation plans highlighting how this will be accommodated, and delivered, between July and September”
The committee lauded an additional voluntary contributions totalling 1.2 million barrels per day made by Saudi Arabia, the UAE, Kuwait and Oman in the month of June 2020.