Output Compliance: OPEC Appoints Silva As Special Envoy

By Fola James

The Organization of Petroleum Exporting Countries’ Joint Ministerial Monitoring Committee, JMMC has appointed Nigeria’s Minister of State for Petroleum Resources, Timipre Silva as a special Envoy to hold consultations  with some countries who are yet to comply with OPEC supply adjustment.

Mohammed Sanusi Barkindo, a former Group Managing Director of the Nigeria National Petroleum Corporation, NNPC is OPEC Secretary General.

The umbrella body for major crude oil producing countries, which include Saudi Arabia and Russia, made the revelation at the 26th Meeting of the JMMC meeting on Wednesday. The organization said monumental strides have been made by members toward attaining full conformity with their voluntary adjustments in output, but added that more needed to be done.

Silva, OPEC said was appointed to hold consultation with members on the need to fully comply with the supply adjustment, noting that 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 organization said.

OPEC outlined Silva’s major assignment thus “In line with the principles of fairness, transparency and equity that underpin the DoC, the JMMC has mandated the Minister of State for Petroleum Resources of Nigeria, HE Timipre Sylva, to undertake a mission as Special Envoy to the following Participating Countries: Congo, Equatorial Guinea, Gabon and South Sudan.

“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.

“Minister Sylva will also discuss with relevant authorities the compensation mechanism in accommodating underperformed volumes as agreed at the June ministerial meetings, and later amended in September 2020.

“Furthermore, this 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, “ OPEC said.