Malaysia’s Petronas is set to reduce its oil production in less than a fortnight.
The company said on Wednesday that following the pact made in Vienna, on December 10, 2016 between OPEC and non-OPEC producers, Petronas will make a voluntary adjustment to Malaysia’s crude oil production starting from January of 2017.
“This voluntary adjustment, taking into consideration prevailing market conditions and prospects, is expected to involve up to 20,000 barrels per day (bpd) of crude oil from the country’s 2016 average production,” Petronas said.
To remind, several non-OPEC nations earlier this month in Vienna pledged to make voluntary cuts in production with the aim to tackle low oil prices.
Apart from Malaysia, the production cuts are expected to be cut in Azerbaijan, Bahrain, Brunei Darussalam, Equatorial Guinea, Kazakhstan, Mexico, Oman, Russia, Sudan, and South Sudan.
The combined non-OPEC reduction target was agreed at 558,000 barrels a day for the producers above who proposed to adjust their oil production, voluntarily or through managed decline. The cuts will start from January 1, 2017, for six months, extendable for another six months, to take into account prevailing market conditions and prospects.
Offshore Energy Today Staff