Four OPEC+ producers that have been pumping crude above their respective quotas have filed with the OPEC Secretariat updated compensation plans through June 2026, OPEC said on Monday.
OPEC members Iraq and the United Arab Emirates (UAE), as well as the non-OPEC producers of the OPEC+ pact, Kazakhstan and Oman, have submitted their updated plans to cut more output between January and June as compensation for previously exceeding their quotas.
The UAE will be compensating small volumes of between 10,000 barrels per day (bpd) and 53,000 bpd each month through June.
Iraq, OPEC’s second-largest producer after Saudi Arabia, will have between 79,000 bpd and 140,000 bpd to compensate each month, while Oman’s 5,000-8,000 bpd monthly compensation cut is negligible for the OPEC+ output.
Kazakhstan, however, has its work cut out for it as its compensation schedule ranges from 503,000 bpd in January to as much as 669,000 bpd in June.
Kazakhstan boosted its crude oil production last year and has been pumping well above its quota, although it continues to reaffirm its commitment to the OPEC+ deal.
Kazakhstan’s Energy Minister Yerlan Akkenzhenov has said that the country has raised its output since January 2025, thanks to the Chevron-led expansion at the giant Tengiz field.
“At the moment, we cannot yet fit into those compensation schedules, but Kazakhstan is taking all possible efforts to comply with the OPEC+ agreement, and we remain committed to it,” Akkenzhenov said in October 2025.
Lately, Kazakhstan’s oil production has dropped, but the decline didn’t have anything to do with the OPEC+ agreement and compensation efforts.
Kazakhstan’s oil production dropped by 230,000 bpd in December, with output averaging 1.522 million bpd, down from 1.759 million bpd in November. The key reasons behind the decline were the forced suspension of Single Point Mooring 3 (SPM-3) at the CPC terminal on the Russian Black Sea coast following a drone attack, and adverse winter weather conditions in the Black Sea.
By Charles Kennedy for Oilprice.com
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