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Adjustments under OPEC+ agreement get going

01 May 2020 [14:19] - TODAY.AZ

By Trend

Abu Dhabi National Oil Company (ADNOC) has notified its customers in a letter of its plans to voluntarily adjust its crude oil production in May and June 2020, Trend reports citing OPEC.

May’s voluntary adjustments: 15 percent Murban crude; 5 percent Umm Lulu crude; 5 percent Das crude; and 15 percent Upper Zakum crude.

June’s voluntary adjustments: 20 percent Murban crude; 5 percent Umm Lulu crude; 5 percent Das crude; and 20 percent Upper Zakum crude.

“The planned adjustments are in line with the UAE’s commitment to oil market stability and the agreements reached at the 9th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held on 9 April 2020 and the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held on 12 April 2020,” said ADNOC.

Moreover, Kuwait Petroleum Corporation (KPC) has informed its customers of a 22 percent reduction in their crude oil contractual volumes from July until December 2020, following reductions already made for May and June 2020, according to a letter sent by KPC to its customers.

These reductions are in line with Kuwait’s effort in the implementation of the OPEC+ agreement in order to restore stability to the global oil market, said KPC.

Norway has announced its plans to voluntarily adjust its production of crude oil to accelerate the stabilisation process in the global oil market, in light of the outbreak of COVID-19 and its impact on the global economy and oil demand.

“We are currently facing an unprecedented situation in the oil market. Both producers and consumers benefit from a stable market. We have previously stated that we will consider a cut in Norwegian production if several big producing countries implement significant cuts. The decision by the Norwegian Government to reduce Norwegian oil production has been made on an independent basis,” said Tina Bru, Minister of Petroleum and Energy of Norway.

The minister said Norway will cut Norwegian production by 250,000 barrels per day in June and by 134,000 barrels per day in the second half of 2020.

“In addition, the start-up of production of several fields will be delayed until 2021. Consequently, the total Norwegian production in December 2020 will be 300,000 barrels less per day than originally planned by the companies. The regulation will cease by the end of the year.”

Norway is not a Member of OPEC or the Declaration of Cooperation of 23 oil producing countries.


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