The 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting was held via videoconference on Sunday 12 April 2020, under the Chairmanship of HRH Prince Abdul Aziz Bin Salman, Saudi Arabia’s Minister of Energy, and co-Chair HE Alexander Novak, Minister of Energy of the Russian Federation.
The Meeting reaffirmed the continued commitment of the participating producing countries in the ‘Declaration of Cooperation’ (DoC) to a stable market, the mutual interest of producing nations, the efficient, economic and secure supply to consumers, and a fair return on invested capital.
In view of the current fundamentals and the consensus market perspectives, and in line with decisions taken at the 9th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held a few days earlier on 9 April 2020, all participating countries agreed to adjust downwards their overall crude oil production by 9.7 million bpd, starting on 1 May 2020, for an initial period of two months that concludes on 30 June 2020.
For the subsequent period of six months, from 1 July 2020 to 31 December 2020, the total adjustment agreed will be 7.7 million bpd. It will be followed by a 5.8 million bpd 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 Russia, both with the same baseline level of 11 million bpd.
The agreement will be valid until 30 April 2022, however, the extension of this agreement will be reviewed during December 2021.
Read the article online at: https://www.hydrocarbonengineering.com/refining/14042020/opec-agrees-massive-deal-to-cut-oil-output/