Several OPEC+ countries that previously exceeded agreed-upon limits have submitted revised compensation schedules to the OPEC Secretariat, extending corrective output cuts through June 2026, the group announced on Monday.
The countries include OPEC members Iraq and the United Arab Emirates, as well as non-OPEC producers Kazakhstan and Oman. Each plans to implement additional monthly reductions between January and June to offset earlier overproduction.
The United Arab Emirates will apply relatively small compensation cuts. Its revised plan outlines monthly reductions ranging from 10,000 barrels per day (bpd) to 53,000 bpd through June.
Iraq, OPEC’s second-largest producer after Saudi Arabia, faces steeper adjustments. Its compensation volumes range from 79,000 bpd to 140,000 bpd per month. Oman’s contribution remains limited, with monthly cuts of between 5,000 bpd and 8,000 bpd, which has minimal impact on overall OPEC+ supply.
Kazakhstan Faces the Largest Adjustment
Kazakhstan carries the heaviest compensation burden among the four producers. Its updated schedule requires cuts of about 503,000 bpd in January, rising to as much as 669,000 bpd by June.
The country increased crude production significantly in 2025, pushing output well above its OPEC+ quota. Authorities have nonetheless maintained their commitment to the production agreement.
Energy Minister Yerlan Akkenzhenov previously said higher output since January 2025 followed the Chevron-led expansion at the Tengiz oil field. He acknowledged challenges in meeting the compensation targets but reiterated Kazakhstan’s intention to comply with the pact.
Recent Output Declines Linked to Disruptions
Kazakhstan’s crude output has declined in recent months, although the drop did not result from OPEC+ compliance efforts.
Production fell by about 230,000 bpd in December, with average output at 1.522 million bpd, down from 1.759 million bpd in November. The decline followed the forced shutdown of Single Point Mooring 3 at the Caspian Pipeline Consortium terminal on Russia’s Black Sea coast after a drone attack. Adverse winter weather in the region also disrupted export operations.
As a result, the lower production reflected logistical and weather-related constraints rather than deliberate compensation cuts under the OPEC+ framework.
