OPEC holds constructive workshop between Iraq, Kazakhstan and secondary sources on compensation plans
The 35th OPEC and non-OPEC Ministerial Meeting (ONOMM) held 04 Jun 2023 reiterated the critical importance of adhering to full conformity, and subscribing to the concept of compensation. Furthermore, the 53rd Meeting of Joint Ministerial Monitoring Committee (JMMC) held on 3 April 2024 stated that participating countries with outstanding overproduced volumes for the months of January, February and March 2024 will submit their detailed compensation plans to the OPEC Secretariat by 30 April 2024.
In light of the above, the OPEC Secretariat organized a very productive technical workshop today via videoconference between technical experts from Iraq and Kazakhstan, and industry experts from the secondary sources providing data on production of countries participating in Declaration of Cooperation (DoC).
The successful exchange aimed to share compensation plans for Iraq and Kazakhstan for their outstanding overproduced volumes for the months of January, February and March 2024, which totaled about 602 tb/d for Iraq and for 389 tb/d Kazakhstan. The plans shared by both countries below show in details that the entire over-produced volumes will be fully compensated for by end of this year. Moreover, any overproduction that may arise in the month of April 2024 for these countries will be accommodated in the respective compensation plans over the remaining months in 2024.
Table: Overproduction Compensation Plan for Iraq and Kazakhstan
| Country | Cumulative over- production Jan. 2024 to March 2024 (tb/d) | Compensation Plan | ||||||||
| *April | May | June | July | Aug. | Sept. | Oct. | Nov. | Dec. | ||
| Iraq | 602 | na. | 50 | 50 | 50 | 50 | 50 | 100 | 100 | 152 |
| Kazakhstan | 389 | -100 | 18 | 0 | 0 | 131 | 0 | 299 | 40 | 0 |
*The overproduction that may arise in the month of April 2024 for these countries will be accommodated in the respective compensation plans over the remaining months in 2024. Read full article
