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The UAE achieved 126% compliance with its OPEC+ quota in October, the energy ministry said late Nov. 17, as OPEC’s third largest producer sought to compensate for overproduction in August.
The country’s compliance since the cuts were implemented in May is 101%, the ministry said in a statement on the official WAM news agency.
The UAE produced 2.44 million b/d in October, according to secondary sources quoted in OPEC’s November monthly oil report. The UAE’s quota is 2.59 million b/d.
The UAE has implemented compensation cuts since it breached its OPEC+ quota in August, pumping 2.693 million b/d, 103,000 b/d above its quota then. UAE energy minister Suhail al-Mazrouei said the country needed to pump more crude in August to produce associated gas for electricity generation.
The Joint Ministerial Monitoring Committee of the OPEC+ alliance on Nov. 17 praised the overall high compliance achieved by members to their respective quotas, pegging it at 101% for October and 99.5% since May. However, the committee reiterated that previous overproduction needed to be made up through “compensation cuts” under the terms of the deal.
So far, among the 11 members that are required to carry out compensation cuts, only the UAE and Angola have made significant progress, the committee noted. It tallied 768,000 b/d of catch-up cuts that had been made, but did not specify how much excess production still needed to be accounted for, or which countries were responsible for the excess.
ADNOC nominations
Since September, Abu Dhabi National Oil Co., the UAE’s biggest energy producer, has slashed its monthly nominations to help the country compensate for overproduction in August.
ADNOC informed its term customers it will reduce by 20% all four crude grades nominated for delivery in December, down from a 25% cut for November deliveries.
ADNOC informed customers, who lift contracted monthly volumes, also known as term lifters, that it would cut the volume available for export over December by 20% for its more popular Murban and Upper Zakum crude grades as well as for its Umm Lulu and Das Blend grades. In October, the oil producer slashed nominations by 30% for all crude grades.
The drastic reduction for October, November and December nominations follow a 5% cut that ADNOC had made for September, August and July. June term volumes for Murban and Upper Zakum had been slashed 20%, with Das Blend and Umm Lulu volumes trimmed by 5%, as the UAE joined Saudi Arabia, Kuwait and Oman in enacting additional voluntary cuts below their OPEC+ quotas for that month alone.
