SHARE
OPEC Secretary General HE Mohammad Sanusi Barkindo. Image courtesy of OPEC.

OPEC members have begun official talks aimed at implementing a proposed production agreement.

According to Reuters, OPEC’s High Level Committee began talks in Vienna on Friday to discuss production cuts.

The High Level Committee primarily consists of OPEC governors and national representatives and can only make recommendations to the group’s ministers.

OPEC’s ministers will meet on November 30 in Vienna.

An unnamed OPEC delegate told Reuters that the talks are “getting complicated” and that new issues continue to pop up “every day.”

Representatives from non-OPEC producers are expected to attend the committee’s meeting on Saturday.

According to Reuters, non-OPEC producers expected to send representatives to Saturday’s meeting include Azerbaijan, Bolivia, Brazil, Kazakhstan, Mexico, Oman and Russia.

OPEC members agreed at a meeting in Algeria last month to cut the group’s output range to between 32.5 million to 33 million barrels per day, down from a record output of 33.6 million barrels per day in September.

OPEC Secretary General HE Mohammad Sanusi Barkindo said during opening remarks before the committee meeting that OPEC and non-OPEC producers must “take coordinated and timely action for the common good of all.”

“While we have seen the rebalancing process already underway, the physical market remains in surplus. A large stock overhang continues to persist. And today’s excess stocks of around 300 million barrels calls for our collective and urgent action,” Barkindo said.

Barkindo told Reuters earlier this month that a production cap would likely be in place for six months and then reviewed.

OPEC members have not yet agreed on how the production cuts will be allocated.

Saudi Arabian Energy Minister Khalid Al-Falih told Reuters after the Algeria meeting that a production deal would likely allow Iran, Libya and Nigeria to produce “at maximum levels that make sense.”