UAE’s ADNOC Plans Oil Field Maintenances In March-April To cut Output, Meet OPEC Target
SINGAPORE/DUBAI, Jan 5 (Reuters) – Abu Dhabi National Oil Company (ADNOC) has scheduled upkeep at oil fields in March and April that can minimize output to fulfill its OPEC output reduction goal.
Field upkeep is anticipated to scale back Murban crude exports in March and shipments for Das crude in April, three people conversant in the matter said on Thursday.
The sources spoke on situation of anonymity as they weren’t authorised to discuss the matter publicly.
The United Arab Emirates (UAE) has dedicated to cut production by 139,000 barrels per day (bpd) in the primary half of 2017 from 3.013 million bpd in October, down 4.Sixty one percent, as part of a deal by the Group of the Petroleum Exporting International locations (OPEC) aimed toward curbing global oversupply and propping up prices.
“Compliance from the core GCC members (Saudi, Kuwait, UAE, Qatar) shall be strong, ” Virendra Chauhan, analyst at consultancy Power Facets said in an e-mail.”
The emirate of Abu Dhabi is the key contributor to the UAE’s oil manufacturing along with Dubai the place output has been declining.
It was not immediately clear how much exports may fall. One of many sources said ADNOC has also scheduled maintenance at its Ruwais refinery during the same period, which could scale back domestic demand and reduce the impression on exports. Abu Dhabi Oil Refining Firm (Takreer) could not be instantly reached for remark.
ADNOC agreed last month to supply some refiners in Asia with extra oil above contracted volumes in February that could partly compensate for lower supplies in March and April.
Any reduction in exports of the 2 Abu Dhabi mild crude grades may improve demand and spot costs for different comparable Center Eastern grades, a Singapore-based crude trader stated.
Asian refiners may also petroleum refining volume 1 zip turn to arbitrage provides from the Atlantic Basin for replacements although Asia’s total crude demand will likely be decrease in the course of the second quarter resulting from seasonal refinery maintenance, two traders mentioned.
Production of ADNOC’s flagship onshore Murban crude is near 1.6 million bpd whereas offshore Das crude output is near 650,000 bpd, in response to business estimates. The majority of ADNOC’s crude is exported to Asia.
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