The United Arab Emirates (UAE) will comply fully with its OPEC commitment to reduce oil production by more than 139,000 barrels per day (Mbbl/d) in March and April, the Gulf OPEC member's energy minister Suhail al-Mazrouei said on March 9.
"UAE production cut for March and April will be more than 139,000 [barrels per day] due to the maintenance activities, which means more than 100% compliance," Suhail al-Mazrouei wrote on his Twitter account.
"[The] UAE is committed to its share of the production cut agreed with OPEC."
The UAE, among the core Gulf OPEC group that traditionally shows high compliance with output agreements, has focused on expanding its production capacity in the last few years.
OPEC has pledged to curb its production by about 1.2 MMbbl/d from Jan. 1, the first cut in eight years, to boost prices and get rid of a supply glut.
Compliance with output restrictions has often been a problem for OPEC in the past, but this time the group delivered reductions amounting to as much as 90% of the target in the first month alone.
The UAE has delivered a smaller portion of its pledged reduction, based on its own figures and OPEC output estimates by government agencies, consultants and industry media.
Under the OPEC deal, the UAE was to cut production to 2.874 MMbbl/d. It told OPEC it produced 3.06 MMbbl/d in January, and a Reuters survey estimated its output at 2.98 MMbbl/d.
Still, officials and industry sources said the UAE will try to move closer to its target in the coming months, improving average compliance during the six-month duration of the supply cut rather than focusing on month-by-month performance.
Oilfield maintenance could help to push compliance higher. Abu Dhabi National Oil Co. (ADNOC) has work planned at oil fields in March and May, people familiar with the matter said.
ADNOC said on March 9 it had informed customers of cuts in crude allocations for March and April.
In March, only Upper Zakum crude grade will be cut by 5%, while in April both the Murban and Das grades will be reduced by 5%, and Upper Zakum by 3%. ADNOC said in a letter to customers dated March 6 and received by Reuters on March 9.
Recommended Reading
Vår Energi Hits Oil with Ringhorne North
2024-04-17 - Vår Energi’s North Sea discovery de-risks drilling prospects in the area and could be tied back to Balder area infrastructure.
Tethys Oil Releases March Production Results
2024-04-17 - Tethys Oil said the official selling price of its Oman Export Blend oil was $78.75/bbl.
Exxon Mobil Guyana Awards Two Contracts for its Whiptail Project
2024-04-16 - Exxon Mobil Guyana awarded Strohm and TechnipFMC with contracts for its Whiptail Project located offshore in Guyana’s Stabroek Block.
Deepwater Roundup 2024: Offshore Europe, Middle East
2024-04-16 - Part three of Hart Energy’s 2024 Deepwater Roundup takes a look at Europe and the Middle East. Aphrodite, Cyprus’ first offshore project looks to come online in 2027 and Phase 2 of TPAO-operated Sakarya Field looks to come onstream the following year.
E&P Highlights: April 15, 2024
2024-04-15 - Here’s a roundup of the latest E&P headlines, including an ultra-deepwater discovery and new contract awards.