Russia, Kazakhstan outline plans to offset excess oil output Commitment to OPEC+ framework

Russian Deputy Prime Minister Alexander Novak and Kazakh Energy Minister Almasadam Satkaliev reaffirmed their countries' commitment to the OPEC+ agreement in a phone conversation, discussing cooperation within the alliance.

“Both sides confirmed the full commitment of their countries to the agreement and voluntary production cuts, along with their commitment to compensation according to updated schedules that will be submitted to the OPEC Secretariat,” the statement by the office of the Russian Deputy Prime Minister reads, Caliber.Az reports citing Russian media.

Separately, Iraq’s Oil Ministry announced that it had achieved reduced oil production by lowering domestic consumption and exports to 3.3 million barrels per day.

Russia, Kazakhstan, and Iraq have each exceeded their agreed-upon production levels under OPEC+ in recent months. Since August, these countries have been following compensation schedules to address their “under-reduced volumes” (with Russia beginning in October).

Following the October 2 meeting of the Joint Ministerial Monitoring Committee (JMMC), the OPEC Secretariat reported that Iraq, Kazakhstan, and Russia had pledged to meet their production quotas for September.

However, data in the alliance’s report, based on secondary sources, showed each country had exceeded the required levels: Iraq by 207,000 barrels per day, Kazakhstan by 105,000 barrels per day, and Russia by 23,000 barrels per day.

As per the previously agreed compensation schedules, Iraq is expected to compensate an additional 100,000 barrels per day in November for previous overproduction (up from 95,000 barrels per day in October), Kazakhstan 32,000 barrels per day (down from 265,000 barrels per day last month), and Russia 30,000 barrels per day (increased from 10,000 barrels per day in October).

By Tamilla Hasanova