The OPEC Secretariat announced on Wednesday that it had received compensation proposals from Iraq, Kazakhstan and Russia for their excessive oil production in H1 2024.
The oil organisation stated that the combined overproduction from the three countries amounted to 2.28 million barrels per day (mbbl/d) during this period, set against an average combined output for all the member nations of both organisations of 46mbbl/d.
During the 37th OPEC and non-OPEC Ministerial Meeting (ONOMM) on 2 June 2024, the importance of full compliance and adhering to the compensation mechanism was reaffirmed.
The secretariat received compensation proposals from Iraq, Kazakhstan and Russia for their overproduction volumes from January to June 2024, totalling around 1.18mbbl/d for Iraq, 620,000 barrels per day (bpd) for Kazakhstan and 480,000bpd for the Russian Federation.
The figures were assessed by approved independent sources, said the secretariat.
Russia exceeded its production volumes in June, but its levels have decreased every month since April.
Russia announced on its Telegram channel on 24 July that it intends to address the issue of overproduction and fully comply with the requirements in July.
The nation, currently sitting under a raft of international sanctions following its invasion of Ukraine, plans to compensate for the surplus production from April 2024 during a compensation period between October and November 2024, and then from March until the end of September 2025.
On Tuesday, Deputy Prime Minister Alexander Novak stated that Russia is producing oil very close to its crude production cut target under the OPEC+ agreement, according to Asharq Al-Awsat News.
Acknowledging the oil overproduction last month, Russia mentioned that it exceeded its OPEC+ production quota in April for "technical reasons", the news agency reported.
The Ministry of Energy of Kazakhstan also announced plans on 9 July to adjust its OPEC+ oil production limit in the first half of this year by the end of September 2025.
It has presented a comprehensive plan for gradual compensation to satisfy other group members. In June, Kazakhstan increased its daily oil and gas condensate production by 4% from the previous month, reaching 7.24 million tonnes, surpassing the OPEC+ production limit.
The Kurdistan region in Iraq has been credited with high production estimates, over which the government in Baghdad has limited influence.
Even though Iraq reduced output by 30,000bpd in June to 4.25 million, it remains 250,000bpd above the new quota, Offshore Technology previously reported.
