Saudi crude output to fall to 9.8 million bpd in March — Falih

Saudi Energy Minister Khalid al-Falih speaks during a news conference in Riyadh, Saudi Arabia January 9, 2019. (Reuters)
Updated 12 February 2019
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Saudi crude output to fall to 9.8 million bpd in March — Falih

  • The March production figure means Saudi would be voluntarily cutting output by more than 500,000 bpd

LONDON: Saudi Arabia plans to produce around 9.8 million barrels per day of oil in March, over half a million bpd below its pledged production level under a global supply-cutting deal, Energy Minister Khalid Al-Falih told the Financial Times.
Exports would fall in March to 6.9 million bpd, according to the article published on Tuesday.
The March production figure means Saudi would be voluntarily cutting output by more than 500,000 bpd below its pledged production level under a deal between the Organization of the Petroleum Exporting Countries and allies led by Russia.
Under the deal reached in December and which came into effect at the start of the year, Saudi Arabia’s target production is 10.311 million bpd.
The news boosted Brent crude prices by more than 2 percent to nearly $63 a barrel.
Production in March would be 1.2 million bpd lower than Saudi Arabia’s November output, which was an all-time high.
In the interview, Falih addressed a US bill that might expose OPEC to antitrust lawsuits, saying the legislation could be “harmful” to the global economy, and expressed his hope that the United States would “do the right thing.”
He said if Saudi Arabia were unable to balance the market by adjusting production, the world would suffer “irreparably.”
A US House of Representatives committee approved the bill known as No Oil Producing and Exporting Cartels Act, or NOPEC, last week.


Turkey set to begin oil and gas drilling off Cyprus

Updated 43 min ago
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Turkey set to begin oil and gas drilling off Cyprus

  • “In the coming days we will start drilling with two ships around Cyprus,” Turkish foreign minister said
  • Turkey and the Cypriot government have overlapping claims of jurisdiction in the eastern Mediterranean

ISTANBUL: Turkey will begin drilling for oil and gas near Cyprus in coming days, state-owned news agency Anadolu reported Foreign Minister Mevlut Cavusoglu saying on Thursday, a move that could stoke tensions with neighboring Cyprus and Greece.
Turkey and the internationally recognized Greek Cypriot government have overlapping claims of jurisdiction for offshore oil and gas research in the eastern Mediterranean, a region thought to be rich in natural gas.
“In the coming days we will start drilling with two ships around Cyprus,” Cavusoglu was quoted as saying in a speech to a business conference in western Turkey’s Aydin province.
“Let those who come to the region from far away, and their companies, see that nothing can be done in that region without us. Nothing at all can be done in the Mediterranean without Turkey, we will not allow that,” Cavusoglu said.
Turkey launched its first drillship “Fatih” in October to drill off the coast of Turkey’s southern Antalya province. It said a second ship that it purchased would operate in the Black Sea, but was diverted to the Cyprus area.
Breakaway north Cyprus, which is supported by Turkey, says any offshore wealth also belongs to them, as partners in the establishment of the Republic of Cyprus in 1960.
The island was divided in 1974 after a Turkish invasion triggered by a brief Greek-inspired coup. Countless peacemaking endeavours have failed, and offshore wealth has increasingly complicated peace negotiations, with Greek Cypriots saying the matter is not up for discussion.