Malaysia's Petronas will voluntarily make some adjustments to its crude oil production beginning in January 2017, a decision that stems from the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers made earlier this month.
The company is planning to cut up to 20,000 b/d.
Following the pact made in Vienna, Austria on 10 December 2016 between OPEC and non-OPEC producers, Petronas will make a voluntary adjustment to Malaysia’s crude oil production starting from January of 2017, the company said.
“This voluntary adjustment, taking into consideration prevailing market conditions and prospects, is expected to involve up to 20,000 b/d of crude oil from the country’s 2016 average production,” Petronas said.
On 30 November, OPEC made a decision to implement a new OPEC-14 production target of 32.5 MMb/d effective 1 January 2017 to accelerate the ongoing drawdown of the stock overhang and bring the oil market rebalancing forward. The reduction will cut output by some 1.2 MMb/d, from the current 33.64 MMb/d.
Image from Petronas.
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