The Strategist

Chevron Corp. to resume oil exports from Saudi Arabia and Kuwait

06/23/2020 - 07:17

In July, one of the world's largest energy companies, the American Chevron Corp., intends to resume oil exports from its joint ventures with the governments of Saudi Arabia and Kuwait, according to the Wall Street Journal, citing officials in both countries.

Alf van Beem
Alf van Beem
It is expected that the level of production will increase by about 80 thousand barrels per day in this regard. The newspaper also recalls that both countries are parties to the OPEC + agreement.

At the same time, officials in Saudi Arabia said that they would balance any increase in production at the enterprise with reductions in other places to meet the terms of the deal. Kuwait's Ministry of Petroleum did not respond to a request for comment.

New OPEC + agreements started in May with a reduction in oil production of 9.7 million barrels per day for two months, and on June 6 this condition was extended to July. Further, the volume of reductions will decrease to 7.7 million barrels per day for the period until the end of the year and to 5.8 million - to the end of April 2022. The base of reference was taken in October 2018, but for the Russian Federation and Saudi Arabia an indicator of 11 million barrels per day was set, of which there is a decrease of 23%, 18% and 14%, respectively.

At the same time, those countries that failed to fulfill their obligations in May and June committed to compensate for this in July-September. Among such countries are Iraq, Kazakhstan, Angola and Nigeria.