Azerbaijan signed the “Declaration on Cooperation” and the “Charter on Long-term Cooperation" related to the reduction of oil production for another 9 months

At the 6^th "OPEC Plus" Ministerial Meeting in Vienna, a Charter on long-term cooperation between OPEC member countries and non-OPEC members was adopted. Then an agreement was reached to extend the deadline of the agreement on the reduction of oil production for another 9 months. Azerbaijan also joined the decision of the “Charter on Cooperation”, as well as of OPEC and non-OPEC member countries, which will be valid until the end of the first quarter of 2020.

The Minister of Energy Parviz Shahbazov, who participated in the event, appreciated the current meeting of OPEC and OPEC non-OPEC ministers as a historic event in the framework of “OPEC Plus” cooperation: “Thanks to the “Charter of Cooperation” between OPEC and non-OPEC countries, we will already carry out our efforts to balance the oil market in an organized manner. The Charter, as a mechanism for long-term cooperation, will protect the interests of oil producers and provide sustainable support to the oil industry.”

At the meeting, non-OPEC ministers also agreed to the OPEC proposal, taking into account the economic and geopolitical factors associated with daily production, the rate of development of the world economy, the dynamics of supply and demand. An agreement to reduce production was found acceptable for renewal with full coverage of the winter season. Following the discussions, the OPEC member countries and countries that are not members of the organization, as well as Azerbaijan signed a “Declaration of Cooperation”.

The Minister of Energy Parviz Shahbazov also commented on this decision of the “OPEC Plus” countries to regulate the oil market and maintain stability in the coming months: “This is an important decision to balance the market during the period of continuing economic and geopolitical uncertainty. The “OPEC Plus” countries have once again demonstrated solidarity against risks. Azerbaijan’s entry into this process, the signing of the “Declaration of Cooperation” is fully consistent with the interests of our country,” the minister added.

It should be noted that the execution of the “Declaration of Cooperation” is planned from July 1, 2019 to March 31, 2020. Quotas of “OPEC Plus” countries according to the “Declaration of Cooperation” adopted last December remain unchanged.