OPEC members are negotiating with several big oil producers to take part in the group's coordinated efforts to reduce global oil supplies, according to a report by The Wall Street Journal. They're asking these companies to shoulder some of the supply reduction so that their national oil companies aren't the only ones participating. The group, along with several non-member nations, will begin reducing their oil supplies by 9.7 million barrels per day in May.
Some nations have ordered producers operating in their countries to reduce their supplies. Oman, for example, mandated Occidental Petroleum (OXY 2.55%) cut production by 58,000 barrels per day (BPD). Meanwhile, several countries have asked producers to reduce output at some of their locations. Angola, Azerbaijan, and a couple of countries in the Middle East have requested that BP (BP 3.18%) cut its production. Overall, BP gets half its oil supplies from countries participating in the OPEC+ alliance.
Chevron (CVX 1.64%), meanwhile, can continue operating its 50%-owned venture in Kazakhstan according to its existing business plan. However, Nigeria has asked Chevron to explore ways to reduce costs and adjust its production in that country. Nigeria has also requested that Royal Dutch Shell (RDS.A)(RDS.B) shoulder some of the supply reduction burden.
Total (TTE 4.35%) and Eni (E 2.47%) are also major producers in Africa and Asia, where many countries are part of the OPEC+ group that's reducing its output. As a result, these companies will likely need to participate in the supply reductions by those nations.
Meanwhile, Norway will voluntarily join the global effort by reducing its supply 250,000 BPD in June and by 134,000 BPD in the second half of the year. The move will impact Equinor (EQNR 0.71%), Total, Royal Dutch Shell, and ConocoPhillips (COP 2.64%).