The Minister of State for Petroleum Resources, Timipre Sylva, has been appointed by the Joint Ministerial Monitoring Committee (JMMC) of the Organization of Petroleum Exporting Countries (OPEC) as Special Envoy to some participating countries in the ‘Declaration of Cooperation’ (DoC).
The mission, which is in line with the principles of fairness, transparency and equity, is to assist the Special Envoy to engage in further consultations with DoC participating countries which include Congo, Equatorial Guinea, Gabon and South Sudan.
According to a press statement from OPEC, this decision was taken at the 26th meeting of the JMMC, held on February 3, 2021.
At the meeting, the Chair of the Committee, HRH Prince Abdul Aziz bin Salman, Saudi Arabia’s Minister of Energy, and Co-chair, HE Alexander Novak, Deputy Prime Minister of the Russian Federation, commended the positive efforts of all countries participating in the DoC for the monumental strides taken towards attaining full conformity with their voluntary adjustments in output.
The statement acknowledged that Participating Countries have been proactive and pre-emptive in measures taken to mitigate the devastating impact of the COVID-19 pandemic on the oil market.
OPEC, in its statement, said, “While progress has been achieved in introducing a greater degree of stability in the oil market since the historic decisions taken in April 2020, Participating Countries will not rest on their laurels. Sustainable oil market stability necessitates a continual renewal of effort, engagement and responsiveness to factors affecting the market.
“The purpose of this mission is to hold consultations with the respective leaders of these countries on the DoC market rebalancing efforts. In particular, the Special Envoy will discuss matters pertaining to conformity levels with the voluntary production adjustments and explore how Participating Countries can collectively support and assist each other in achieving full conformity with their supply adjustments.”
The statement also said that Nigeria’s Oil Minister, Sylva was expected to also discuss with relevant authorities about the compensation mechanism in accommodating underperformed volumes as agreed at the June ministerial meetings, and later amended in September 2020.
In addition, the mission will solidify the dialogue channels between Participating Countries, and enhance transparency and information exchange. Given the geographic proximity of these countries, it is a rare opportunity for Ministers and leaders to safely meet in person, following months of virtual conferencing.
What you should know
- The Declaration of Cooperation constitutes an unprecedented milestone in the history of OPEC. For the first time ever, OPEC Member Countries collaborated with 11 non-OPEC oil-producing countries (now 10 – Equatorial Guinea became an OPEC Member in May 2017) in a concerted effort to accelerate the stabilization of the global oil market.
- The DoC was an outcome of the Joint OPEC and non-OPEC Producing Countries’ Ministerial Meeting held on December 10, 2016, and was effective for an initial period of 6 months. The remarkable success realised through this unprecedented cooperation has led to its extension multiple times.
- Building on the success of the DoC, its participants recognized the importance of establishing a more permanent platform focused on longer-term cooperation. Thus, at the 6th OPEC and non-OPEC Ministerial Meeting, held on July 2, 2019, OPEC Member Countries and attending non-OPEC oil-producing countries endorsed the ‘Charter of Cooperation.’ The Charter provides a platform to facilitate dialogue and exchange views regarding conditions and developments in the global oil and energy markets.
- The goal is to contribute to a secure energy supply and lasting stability for the benefit of producers, consumers, investors and the global economy.