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10

OPEC bulletin 8–9/17

C o n f e r e n c e N o t e s

4

t h

M e e t i n g o f t h e J o i n t M i n i s t e r i a l M o n i t o r i n g C o m m i t t e e

JMMC Chairman praises

unprecedented OPEC-non-OPEC

cooperation

In his remarks to the 4

th

Meeting of the JMMC, Issam A Almarzooq,

Kuwait’s Minister of Oil and Minister of Electricity and Water, and

Chairman of the JMMC, underlined the many milestones being

achieved through this historic OPEC-non-OPEC collaboration.

Almarzooq began by providing a historical overview of

how this cooperative relationship began and led to the

creation of the JMMC.

“The JMMC was established following OPEC’s 171

st

Ministerial Conference decision of November 30, 2016,

and the subsequent historic ‘Declaration of Cooperation’

made at the joint OPEC and non-OPECMinisterial Meeting

of December 10, 2016. At these meetings, 11 non-OPEC

oil producing countries cooperated with the 13 OPEC

Member Countries in an effort to accelerate the stabili-

zation of the global oil market through adjustments in oil

production of around 1.8m b/d.”

The Chairman also explained the importance of the

implementation monitoring process and how the JTCwas

founded.

“In support of this historic cooperation, this

Committee, which concluded its inaugural meeting

on January 22 at the OPEC Secretariat in Vienna, put

together a framework of monitoring mechanisms. Part of

that framework included the creation of a Joint Technical

Committee — the JTC — which met for the sixth time two

days ago, on the July 22, here in St Petersburg. The man-

date of the JTC was to produce, with the support of the

Secretariat, a monthly report updating the JMMC on the

status of the implementation process.”

He then provided the background on the key decision

made at the last JMMC meeting in May 2017, which led

to an extension of the ‘Declaration of Cooperation’.

“At the last meeting of the JMMC on May 24, 2017,

our committee, having consideredmarket conditions and

global inventory levels, concluded that it was necessary

to extend the production adjustments. The committee

also recommended that the duration of the anticipated

extension should be longer than the originally envisaged

period in the ‘Declaration of Cooperation’ of six months.

Having discussed various scenarios presented by the

JTC with regard to the extension of the ‘Declaration of

Cooperation’, the JMMC recommended that the produc-

tion adjustments of the participating countries should be

extended for nine months, commencing July 1, 2017.”

The 172

nd

Meeting of the OPEC Conference and the

2

nd

OPEC and non-OPEC Ministerial Meeting of May 25,

2017, then adopted these recommendations and agreed

to expand the mandate of the JMMC to continue to moni-

tor conformity, evaluate market developments and make

appropriate recommendations if deemed necessary.

The Chairman reiterated that throughout the entire

span of this cooperation, the overarching goal has

remained constant: to achieve an enduring stability for

the global oil market.

“While our meeting today is the first since the exten-

sion of the ‘Declaration of Cooperation’ and expan-

sion of our mandate, our core tasks remain the same,

namely ensuring that the objectives of the Ministerial

Conference decision and the ‘Declaration of Cooperation’

are achieved through the successful implementation of

voluntary adjustments in production. Furthermore, we

remain committed to joint cooperation for the achieve-

ment of a lasting stability in the oil market — in the inter-

est of oil producers, consumers and the industry.”

He went on to commend the high levels of conformity

achieved during the first half of 2017.