Energy Ministry: OPEC Secretariat submitted Perpetual Charter to Azerbaijan for ratification

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Azerbaijan has also joined the charter of perpetual cooperation signed at the July meeting in Vienna, Advisor to Energy Minister Zamina Aliyeva told Report.

According to her, the Charter is now under consideration.

The charter aims to found an intergovernmental frame in order to enhance the coordination for stability in the oil market, continuation of cooperation among the OPEC and non-OPEC countries. The Charter is voluntary and does not create any commitment. Any country can quit the Charter.

Iraq, Oman and several other countries participating in the OPEC + agreement have ratified the OPEC + perpetual charter, OPEC Secretary General Mohammad Barkindo said at Asia Pacific Petroleum Conference.

“Ratification is an individual process for each country. But some countries have already passed it. Oman, Iraq, for example, reported that their parliaments have already ratified the charter,” he said.

24 OPEC + countries signed a charter of perpetual cooperation at the July meeting in Vienna.

OPEC + countries have been coordinating production management since 2017. At a meeting in July, they extended the agreement to reduce oil production by 1.2 million barrels per day to the level of October 2018. Now the agreement is valid until the end of March 2020.

According to the estimates by the International Energy Agency, 11 OPEC countries participating in agreements to reduce production fulfilled them in July by 119%, as a number of countries exceeded their quotas. Non-OPEC countries also exceeded the deal in July, cutting production by 107% of the plan. This is mainly due to Kazakhstan and Azerbaijan. In general, OPEC + countries have fulfilled the agreement by 115% of the plan since the beginning of the year.

In July, the transaction completion rate by OPEC countries was 134%, by non-OPEC countries – 133%.

Report.az