OPEC deal cuts output by 1.8 million b/d
The OPEC-led coalition of oil producing nations participating in the cartel’s supply cut pact will look to recruit between 10-16 more oil producing nations to join the effort to rebalance the global crude market, according to Venezuelan oil minister Eulogio del Pino.
Speaking with reporters at the sidelines of Russian Energy Week, Del Pino said “Maybe we don’t need to expect another extension, we could have actions to accelerate that balancing.” He added “But that’s something we need consensus on among all the countries.”
Del Pino said if the coalition could attract more participants, the need to extend the deal beyond March 2018 or make deeper cuts may be eliminated.
The OPEC supply cut pact was originally slated to expire in June of this year, but was extended until the end of the first quarter next year. Under the deal, OPEC and 10 non-OPEC countries cut production by a combined 1.8 million barrels per day (b/d).
Del Pino told S&P Global that he has talked with representatives from Egypt. He added that Equatorial Guinea was in the process of recruiting seven African oil producers, including Uganda, Chad and Congo.
Russia’s energy minister Alexander Novak said on Tuesday that Turkmenistan may join the pact. On Monday, Russian President Vladimir Putin led a delegation to Turkmenistan to discuss cooperation on gas production and marketing.
Del Pino says the countries targeted have a combined production of 24 to 25 million b/d. Current participants in the OPEC pact produce about 50 million b/d, over half of the global supply.
“We have counted between 10 and 12 additional countries from South America, from Africa, and we are expecting that maybe we can include up to 40 countries in this agreement,” Del Pino told S&P Global. “That could be a very strong declaration, that would be an excellent relationship.”
