According to an earlier agreement, the 21 nations participating in the supply cuts are collectively trying to reduce the output by almost 1.8 million barrels a day, in most cases, using October 2016 levels as the starting point. Iran is allowed to boost production slightly, while Opec members Libya and Nigeria are exempted. Russia is responsible for more than half of the non-Opec restrictions.
Meanwhile, Saudi Aramco plans to spend close to $300 billion over 10 years in upstream oil and gas projects, Chief Executive Amin Nasser said.
“This is mainly upstream, onshore, offshore and joint ventures in the Kingdom and out of the Kingdom.”
He also said a decision would hopefully be made soon on the location for the listing of shares in the oil giant.
Crown Prince Mohammad bin Salman said last month that Aramco’s initial public offering, part of an ambitious plan to diversify the Saudi economy beyond oil, was on track to go ahead in 2018.
Sultan Ahmed Al Jaber, Group CEO of Abu Dhabi National Oil Company (Adnoc), stressed the company was on track to increase its upstream capacity to 3.5 million barrels per day. He confirmed Adnoc planned to increase its refining capacity by 60 per cent in downstream.
The oil market is rebalancing at an accelerating pace, as global levels of oil inventories have fallen visibly, and the demand for oil is robust, Opec Secretary-General Mohammad Barkindo affirmed.
Speaking at an energy industry conference, Barkindo emphasised he was confident that both the oil industry and the global economy were benefitting from the deal to cut output among the major producers