Oil majors, governments haggle over sharing pain of deepest cuts yet – ZAWYA

Oil majors, governments haggle over sharing pain of deepest cuts yet – ZAWYA

LONDON/MOSCOW- From Kazakhstan and Azerbaijan to Nigeria and Angola, oil majors are haggling with national governments over how to share out deep production cuts that add to their pain from low oil prices and depressed fuel sales because of the coronavirus pandemic.. Oil majors have traditionally escaped big cuts in OPEC nations, such as Nigeria, and have never experienced curbs in countries outside the OPEC club, such as Kazakhstan, where they are protected by special clauses agreed with governments.. It is not possible to predict exact production cuts as majors and many governments are still locked in difficult talks.. The majors produce 60% of Kazakhstan's output of 1.7 million bpd, making it impossible for the country to meet its OPEC+ cut quota of 390,000 bpd without the majors.. Beyond OPEC+, more than 600,000 bpd of cuts have already been announced in the United States, some 300,000 bpd in Canada and 200,000 bpd in Brazil - areas where majors are also active..