New Delhi — OPEC has invited 14 non-OPEC oil producers to finalize details of coordinated cuts on Saturday December 10, at the oil producer group's headquarters in Vienna, secretary general Mohammed Barkindo said Monday.
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"We will have our joint ministerial level meeting with non-OPEC countries this coming Saturday, December 10, at the OPEC Secretariat in Vienna -- the first such meeting since 2002," Barkindo said at the Petrotech conference in New Delhi.
OPEC decided on November 30 to hold production at 32.5 million b/d starting January 1, 2017 -- the first coordinated cut since 2008 -- amounting to an approximate 1.2 million b/d cut from current output levels. The deal exempts Libya and Nigeria and is contingent on key non-OPEC producers also agreeing to cut 600,000 b/d in total.
Members of the OPEC delegation in New Delhi also confirmed with reporters that 14 countries had been contacted to attend the meeting on December 10.
The list of the countries that have been invited and are expected to participate in the cuts include Azerbaijan, Bahrain, Bolivia, Brunei, Colombia, Russia, Mexico, Turkmenistan, Oman, Trinidad and Tobago, Egypt, the Republic of Congo, Kazakhstan and Uzbekistan.
Barkindo, speaking at a press briefing in New Delhi, also said that he was "very confident" that non-OPEC would agree on a 600,000 b/d cut.
"A lot of consultations have taken place between us and non-OPEC. This is a collective resolve by both parties to jointly to act and save this industry," he said.
Barkindo also rebutted criticism from some analysts who did not expect OPEC to collectively agree on a cut.
"Give us some credit. This is the first agreement that I know of between ourselves OPEC and non-OPEC countries that has in it a provision, a joint monitoring committee... To monitor and issue compliance to the agreement, this is the first time this has happened, this has guaranteed the integrity of this agreement," he added.
Russian news agency Ria Novosti reported that Russia's energy minister Alexander Novak is planning to attend the Vienna meeting, citing an unnamed source.
The energy ministry said last week it was prepared to "gradually" cut its output by 300,000 b/d from January, to bolster efforts by OPEC to rebalance the oil market. Production in November reached a fresh post-Soviet record high of 11.21 million b/d, up 4% year on year, according to the country's energy ministry.
BRAZIL DECLINES TO CUT CRUDE OIL OUTPUT
One significant oil producer missing from this list is Brazil, which has officially said it will not participate in the December 10 meeting as it cannot commit to a coordinated cut.
"We appeared at a meeting October, and we explained to our friends in OPEC that we will not be able to make any cuts with regard to production... but we support the decision," Marcio Felix Carvalho Bezerra, Brazil's petroleum secretary, told S&P Global Platts on the sidelines of the Petrotech conference.
Brazilian crude oil production has increased steadily this year to over 2.60 million b/d this summer, up from levels of 2.35 million b/d in 2015.
The country produced a record high of 2.671 million b/d of crude in September, up 11.5% from the 2.395 million b/d produced in September 2015, according to ministry data.
Crude oil production has trended steadily higher since April, when state-led producer and refiner Petrobras returned to a normal maintenance schedule after losing about 5% of daily output to workovers and platform shutdowns in the first quarter.
Since then, a series of fresh production and injection wells have been connected to several new floating production, storage and offloading vessels, or FPSOs, that Petrobras and its partners developing the subsalt have brought on stream in recent months.
--Staff Reports, firstname.lastname@example.org
--Edited by Alisdair Bowles, email@example.com
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