Riyadh, Shawwal 15, 1441 AH/ June 07, 2020, SPA
The 11th OPEC and non-OPEC Ministerial Meeting was held via videoconference, on Saturday, 06 June 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 affirmed 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. The Meeting also welcomed Ecuador, Indonesia, Trinidad and Tobago as observers.
The Meeting underscored that the production cut by OPEC+ countries in May, coinciding with the gradual lockdown exit of many economies have led to improvements in the oil market. The Meeting emphasized that it was vital that DoC Participants, and all major producers, remain fully committed to efforts aimed at balancing and stabilizing the market.
In view of the current fundamentals, and following the agreement reached at the 179th Meeting of the OPEC Conference, all Participating Countries:
- Reconfirmed the existing arrangements under the April agreement.
- Subscribed to the concept of compensation by those countries who were unable to reach full conformity (100%) in May and June, with a willingness to accommodate it in July, August and September, in addition to their already agreed production adjustment for such months.
- Agreed the option of extending the first phase of the production adjustments pertaining in May and June by one further month.
- Recognized that the continuity of the current agreement is contingent on them fulfilling elements 1 and 2 above.
- Agreed without dissent that the full and timely implementation of the agreement remains inviolable, based on the five key elements
The Meeting also called upon all major oil producers to proportionally contribute to the stabilization of the oil market, taking into consideration the substantial effort made by the OPEC and non-OPEC Participating Countries of the DoC.
In order to observe the fair, timely and equitable implementation of the above, the Joint Ministerial Monitoring Committee (JMMC) was requested to closely review the general energy market conditions and related factors, oil production levels, and conformity levels with the DoC, assisted by the Joint Technical Committee (JTC) and the OPEC Secretariat. The JMMC is to meet monthly until December 2020 for this purpose, with the next JMMC set for 18 June 2020.
The Meeting decided that an OPEC and non-OPEC Ministerial Meeting also will convene in Vienna, Austria, on 01 December 2020.
