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OPEC+ has 2.375 mil b/d of compensation cuts due through end-2020: document

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OPEC+ has 2.375 mil b/d of compensation cuts due through end-2020: document

Highlights

Only six of 13 non-compliant members submit plans

The six members commit to 1.222 mil b/d of extra cuts

Russia, with second largest excess, did not submit plan

London — The OPEC+ alliance has 2.375 million b/d of so-called "compensation cuts" due to make up for previous overproduction in violation of quotas, but not all members have submitted plans to implement the extra reductions, according to an internal document seen by S&P Global Platts.

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Of the 13 OPEC+ members required to make compensation cuts, only six have outlined their planned schedule of cuts, which total 1.222 million b/d, the document shows.

The largest volume will come from Iraq, whose 698,000 b/d of catch-up cuts will be divided into 203,000 b/d in September and 165,000 b/d in October, November and December.

Russia, which had the second largest excess output at 333,000 b/d, did not submit a plan, according to the document.

OPEC and 10 allies, including Russia, are in the midst of a historic production cut accord aimed at helping the oil market recover from the COVID-19 pandemic. The curbs initially started at 9.7 million b/d for May-July, before tapering to 7.7 million b/d from August through the end of the year.

Under the pact, any member that pumped above its quota in a particular month must atone with additional cuts below their quota in subsequent months by the end of the year.

The OPEC+ monitoring committee, co-chaired by Saudi Arabia and Russia, is next due to meet Oct. 19 online to review September compliance.

Compensation plans

COUNTRY MAY-AUGUST OVERPRODUCTION SEPTEMBER COMPENSATION OCTOBER COMPENSATION NOVEMBER COMPENSATION DECEMBER COMPENSATION
OPEC
Algeria none
Angola 113 not submitted not submitted not submitted not submitted
Congo 137 40 35 34 28
Equatorial Guinea 35 6 11 10 8
Gabon 190 not submitted not submitted not submitted not submitted
Iran exempt
Iraq 698 203 165 165 165
Kuwait none
Libya exempt
Nigeria 283 not submitted not submitted not submitted not submitted
Saudi Arabia none
UAE 184 0 100 84 0
Venezuela exempt
TOTAL OPEC 1,641 249 311 293 201
NON-OPEC
Azerbaijan 4 4 0 0 0
Bahrain none
Brunei 41 not submitted not submitted not submitted not submitted
Kazakhstan 164 0 0 82 82
Malaysia none
Mexico exited deal after June
Oman none
Russia 333 not submitted not submitted not submitted not submitted
Sudan 8 not submitted not submitted not submitted not submitted
South Sudan 184 not submitted not submitted not submitted not submitted
TOTAL NON-OPEC 734 4 0 82 82
TOTAL OPEC+ 2,375 253 311 375 283

Unit: thousand b/d. Source: OPEC+ document