The African Energy Chamber has welcomed the deal struck by OPEC and OPEC+ Member countries on a deal to cut production and maintain market stability.
On Easter Sunday (12 April 2020), OPEC and OPEC+ member countries decided to cut oil production by 9,7-million barrels a day starting on 1 May 2020 until 30 June 2020.
From 1 July 2020, production cuts will be readjusted to 8-million barrels a day until the end of the year.
In addition, OPEC and OPEC+ member countries have agreed on a production cut of 6-million barrels a day from 1 January 2021 until the end of April 2022.
The baseline for the calculation of the adjustments is the oil production of October 2018, except for the Kingdom of Saudi Arabia and the Russian Federation, both with the same baseline level of 11-million barrels a day.
“The spirit of cooperation has triumphed and under the leadership of Mohammed Sanusi Barkindo, OPEC reaches yet another truly historic deal for our continent and for global energy markets,” says NJ Ayuk, executive chairman of the African Energy Chamber. “This clearly shows that in times of critical need we can set aside our differences and unite behind historic deals that will make the difference at home for our companies and our employees.”