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Oman to voluntarily adjust oil output

Oil&Gas Materials 27 April 2020 17:56 (UTC +04:00)
Oman to voluntarily adjust oil output

BAKU, Azerbaijan, April 27

By Leman Zeynalova – Trend:

Mohammed Bin Hamad Al-Rumhy, Minister of Oil and Gas of the Sultanate of Oman, notified Mohammad Sanusi Barkindo, OPEC Secretary General, of the Sultanate's plans to voluntarily adjust oil production as part of its commitment to the Declaration of Cooperation, Trend reports citing OPEC’s website.

The announced voluntary adjustments, which are effective as of 1 May 2020, are based on the agreements reached at the 9th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held on 9 April 2020 and the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held on 12 April 2020.

Earlier, Khaled Ali Al-Fadhel, Kuwait’s Minister of Oil, Minister of Electricity and Water, and Chairman of the Board of Kuwait Petroleum Corporation (KPC), confirmed that the State of Kuwait has begun adjusting its oil production as part of its commitment in the Declaration of Cooperation to support the stability of the global oil market.

During the 9th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held on April 9, 2020, the participants agreed to adjust downwards their overall crude oil production by 10.0 mb/d, starting on 1 May 2020, for an initial period of two months that concludes on 30 June 2020.

For the subsequent period of 6 months, from 1 July 2020 to 31 December 2020, the total adjustment agreed will be 8.0 mb/d. It will be followed by a 6.0 mb/d adjustment for a period of 16 months, from 1 January 2021 to 30 April 2022. The baseline for the calculation of the adjustments is the oil production of October 2018, except for the Kingdom of Saudi Arabia and The Russian Federation, both with the same baseline level of 11.0 mb/d. The agreement will be valid until 30 April 2022, however, the extension of this agreement will be reviewed during December 2021.

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