Iraq, Kazakhstan, Russia submit compensation plans to OPEC

Iraq, Kazakhstan, and Russia have submitted compensation plans to the Organization of the Petroleum Exporting Countries (OPEC) Secretariat for their excess oil production in the first half of 2024.

A statement released by OPEC on Wednesday revealed that the three countries’ combined overproduction between January and June 2024 amounted to 2.28 million barrels per day.

The 37th OPEC and non-OPEC Ministerial Meeting (ONOMM) held on June 2, 2024, reiterated the critical importance of adhering to full conformity and the compensation mechanism, according to the statement.

These plans amounted to approximately 1,184 tb/d for the Russian Federation, 620 tb/d for Kazakhstan, and 1,184 tb/d for Iraq, based on estimates from independent sources that were authorized in the Declaration of Cooperation.

The three countries will reduce their supply on a monthly basis by different amounts through September 2025.

With 70,000 barrels per day and 18,000 barrels per day, respectively, Iraq and Kazakhstan will start in July while Russian reductions will start in October.