LONDON (Reuters) -OPEC on Monday released a compensation schedule from six of its members covering the period from last month and until June next year to make up for producing above their targets. The
OPEC Releases New Schedule for Compensating Oil Overproduction
Overview of OPEC's Compensation Schedule
LONDON (Reuters) -OPEC on Monday released a compensation schedule from six of its members covering the period from last month and until June next year to make up for producing above their targets.
The schedule indicates that in total the members need to deliver monthly cuts ranging from 190,000 barrels per day to 829,000 bpd to comply with output targets.
The data shows that Saudi Arabia and Algeria were the only two countries not required to deliver compensation cuts.
Key Contributors to Compensation Cuts
The group of eight producers agreed to raise production targets by 137,000 bpd for October, thus beginning to unwind a layer of 1.65 million bpd in cuts ahead of schedule. This comes after the group raised output targets by 2.5 million bpd between April and September.
Monthly Cut Requirements
The bulk of the compensation cuts need to be delivered by Kazakhstan, which has consistently produced above its target, followed by Iraq, Russia and the UAE.
Impact on Oil Production Targets
The table below shows the compensation plan in thousands of barrels per day.
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
25 25 25 25 25 26 26 26 26 26 26 Total
Ira 130 130 130 130 130 130 125 125 125 123 122
q 1,400
Kuw 29 30
ait 59
UAE 10 10 10 10 10 20 35 35 55 57 57
309
Kaz 10 15 30 35 100 300 450 490 550 650
. 2,630
Oma 7 10 10 13 9 6 10 5
n 70
Rus 85 85 70 65 6
sia 311
4,779
Tot 261 275 235 248 190 256 470 615 670 730 829
al
(Reporting by Ahmad Ghaddar; Editing by Jan Harvey)
