Kazakhstan, Russia, Iraq submit overproduction compensation plans to OPEC

The Organization of the Petroleum Exporting Countries (OPEC) has announced that it received compensation plans from Iraq, Kazakhstan, and Russia for exceeding their oil production quotas in the first half of 2024.

According to OPEC, the combined overproduction from these three countries totaled 2.28 million barrels per day (bpd) during this period, News.Az reports.

The announcement follows the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on June 2, which emphasized the importance of full compliance and the compensation mechanism.

The compensation plans detail how the countries intend to make up for their excess production. For the first six months of 2024, Iraq overproduced by 1,184 thousand barrels per day (tb/d), Kazakhstan by 620 tb/d, and Russia by 480 tb/d. These figures are based on assessments made by independent sources approved in the Declaration of Cooperation (DoC).

As a result, the three countries will trim output by varying amounts on a monthly basis, according to a table issued by OPEC, to compensate through September 2025.

Iraq and Kazakhstan will begin in July with 70,000 b/d and 18,000 b/d, respectively, while Russian cuts will begin in October.

News.Az