Friday Jul 20, 2018

PetroEnergy Information Network

Sunday / 7/1/2018 12:00:00 AM / 12:04
Service : Oil
News Id : 283517
Reporter : 763

Iran Calls on OPEC to Remind Members to Adhere to Production Quota

(Sunday, July 1, 2018) 12:04

TEHRAN (Shana) -- Iran called on the Organization of the Petroleum Exporting Countries (OPEC) to prevent some members from increasing their output without seeking consensus with other members.

Iranian Minister of Petroleum Bijan Zangeneh sent a correspondence to OPEC President HE Suhail Mohamed Al Mazrouei, Minister of Energy & Industry of the United Arab Emirates and the President of the OPEC Conference, calling on his excellency to remind OPEC Member Countries to adhere to their commitments under the OPEC's decisions adopted in the 171st and 174th Meetings of the Conference and refrain from any unilateral measures undermining the unity and independence of the OPEC.

The following is the full letter:

"Minister of Petroleum

HE Suhail Mohamed Al Mazrouei

Minister of Energy & Industry and the President of the Conference

United Arab Emirates

Excellency,

The 174th Meeting of the OPEC Conference adopted Resolution No.174.513 that decides "that countries will strive to adhere to the overall conformity level of OPEC-12, down to 100%, as of 1 July 2018 for the remaining duration of the above-mentioned resolution and for the JMMC to monitor and report back to the President of the Conference".

An issue that compels me to write to Your Excellency is that we have not arrived to any decision to assign any allocated production level of any member to others. In fact, the resolution by requiring "JMMC to monitor and report back to the President of the Conference” has rested the issue to the President to deal with the issue either through calling for extraordinary meeting or seeking consensus through communication with all Member Countries. Any increase in the production by any Member Country beyond commitments stipulated in OPEC's decisions adopted in 171st and 174th Meetings of the Conference would constitute breach of the agreement. I hereby request Your Excellency to remind OPEC Member Countries to adhere to their commitments under the OPEC's decisions adopted in the 171st and 174th Meetings of the Conference and refrain from any unilateral measures undermining the unity and independence of the OPEC.

 Minister of Petroleum

Iran expressed in the JMMC meeting that any unilateral production increase beyond Member Countries' commitments under the OPEC's decisions would prompt US to take actions against Iran. Regrettably, unilateral behaviours in production increase by some Member Countries is weakening the very foundation of our Organization.

Excellency,

OPEC decisions by no means warrant any action by some of its Member Countries in pursuit of the call for production increase by US, politically motivated against Iran and publically declared. As we are all in agreement to depoliticize our efforts in the OPEC, we should not let others take politicized measures targeting OPEC's unity and independence.

While we may have the same position as to the similar announcement from any of our non-OPEC partners i.e. Russia, but I call upon Your Excellency, as the President of the OPEC Conference to uphold and safeguard the long-term principles, unity and interests of the OPEC at this historic juncture.

It would be highly appreciated if Your Excellency could instruct the Secretariat to circulate the present letter among Their Excellencies, Heads of Delegation of OPEC Member Countries.

Please accept, Excellency, the assurances of my highest consideration and respect.

Bijan Zangeneh

Cc: HE Mohammad Sanusi Barkindo, OPEC Secretary General, for kind information and circulation among

Their Excellencies, Heads of Delegation of OPEC Member Countries"