Abu Dhabi National Oil Company (Adnoc) will cut 10 per cent of its production from three fields as it moves to comply with Opec, according to the country’s energy ministry.
The cuts are in line with the UAE’s participation in a deal to cut global oil output, signed by global producers in November and subsequently extended in May.
UAE energy minister, Suhail Al Mazrouei, said on social media on Monday that the production cuts will be made from its Murban, Das and Upper Zakum term contracts in October.
“Adnoc has announced monthly nomination cuts throughout 2017 in support of the UAE’s Opec commitment to reduce its oil production,” the minister tweeted. He said that the national oil company had also informed customers of its crude nomination cut.
Murban is the onshore grade of crude oil while Das and Upper Zakum are offshore grades. By slashing terms, this will help the country comply with the deal set out by Opec in November and extended in May.
Oil is trading at just over US$50 a barrel, more than 50 per cent lower than late-2014 levels. Opec producers, together with other major exporters led by Russia, agreed a cut of 1.8m barrels per day in November in an attempt to shore up prices.
Saudi Arabia’s oil minister, Khalid Al Falih, said in May that while the initial cut in November was helping, more work is needed to balance the market.
“Nurturing a constructive and stable market environment is our highest priority,” he said. “This goal is important not only for us but also for consumers, as it ensures a sustainable future for oil supply and demand—the absence of which may produce seriously unwelcome outcomes such as price spikes and risks to global energy security.”
Kuwait’s oil minister, Essam Al Marzouq told Kuwait TV last week that Opec will continue to monitor the market ahead of its next meeting in November, and take a decision to extend or end production cuts based on inventory and price levels.
Source: The National