A revised compensation plan for overproduction of oil in the first seven months of 2024 has been published by OPEC, which stands for the Organization of the Petroleum Exporting Countries.
From this month (August 2024) to September 2025, the new plan compensates for excess production from January to July (inclusive).
It replaces a plan issued on 24th July, which was intended to compensate for over-production from January to June, with compensation starting from July.
Iraq, which had previously agreed to under-produce in July in order to compensate, appears to have overproduced in July, but the statement provides no explanation for this.
[Note from Editor: There appears to be a typo in the “tb/d”; If we treat all numbers as volumes, such as “thousand barrels,” rather than as rates per day, the compensation plan corresponds to the excess production. OPEC has not answered demands for clarification.]
Articulation from OPEC:
The 37th OPEC and non-OPEC Ecclesiastical Gathering (ONOMM) held 02 June 2024 repeated the basic significance of sticking to full congruity and the remuneration instrument.
According to assessments made by independent sources approved in the Declaration of Cooperation (DoC), the OPEC Secretariat received updated compensation plans from Iraq and Kazakhstan for their overproduced volumes for the first seven months of 2024 (January to July 2024). These plans totaled approximately 1,440 tb/d for Iraq and 699 tb/d for Kazakhstan.
The OPEC Secretariat’s table below explains in detail how the entire overproduction will be compensated for by September 2025.
Table: Overproduction Remuneration Plan for Iraq and Kazakhstan
