Plateforme de forage pétrolier – Source Pixabay
The Members of the African Organization of Petroleum Producers (APPO) pledged to support the agreement announced on April 9 between the OPEC and non-OPEC countries to cut the global oil production from 1 May 2020 in an attempt to stabilize the oil market threatened by the coronavirus outbreak worldwide and the global economic slowdown.
The African oil producers have followed the Meeting of the OPEC+ which was held on April 9 and the Meeting of the G20 Energy Ministers which took place on April 10, aimed at halting and reversing the unprecedented volatility that now characterize the global oil market since early March 2020.
Through an official Declaration dated April 11, the African Organization thanked the countries involved in the two meetings for their commitment to find a solution for halting the fall of oil prices and praised the announced decision of OPEC+ to reduce the crude oil production under the following agenda :
- By 10 million barrels per day with effect from 1st May 2020 until 30 June 2020 ;
- By 8 million barrels per day from 1st July 2020 until 31 December 2020 ;
- By 6 million barrels per day from 1st January 2020 until 30 April 2022.
The African oil producers named this commitment made on April 9 “a significant step” in the efforts made to halt the fall of crude oil prices which puts under serious threat the global oil industry.
The Members of the African Organization of Petroleum Producers have also praised the G20 energy Ministers for supporting the OPEC+ by committing to take all necessary and immediate measures to ensure energy market stability.
The Members of the African Organization of Petroleum Producers who are not in the OPEC+ group have also committed to contribute to the global efforts aiming at stabilizing the oil market situation, by reducing their daily oil productions. The Organization confirmed that the details of these adjustments will be shared with the OPEC Secretariat as soon as possible.
The African Organization of Petroleum Producers (APPO) is an intergovernmental organisation created in January 1987 in Lagos, Nigeria, to serve as a platform for African oil producing countries to cooperate, collaborate, share knowledge and skills. The headquarters of the APPO is in Brazzaville in Congo. The Organization changed its name from African Petroleum Producers Association to African Petroleum Producers Organization in 2017.
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© Copyright 2020 – Swann Bigot, legal expert and author, for the platform Eurasia Business News
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