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Petronas remains committed to 20,000 bpd of crude oil cut: CEO
MALAYSIA'S state-owned oil company Petronas will stick to its pledged 20,000 barrels per day (bpd) crude oil production cut, its chief executive said when probed on the possible extension of a pact by oil-producing countries to cut output.
CEO Wan Zulkilflee said at a press conference held in conjunction with the 19th Asia Oil and Gas Conference (AOGC 2017): "We are committed to the 20,000 bpd cut; if there is an extension of that arrangement, we will commit to the same cut."
Petronas first announced a "voluntary adjustment" of 20,000 bpd in its crude output from January 2017 last December.
Mr Wan Zul, as he is commonly known in Malaysia, was responding to a media enquiry following a statement from Saudi Arabia's visiting energy minister, Khalid Falih.
On Monday morning, Mr Falih reiterated at AOGC 2017 the intent of Saudi Arabia to press for the extension to the second half of 2017, a pact reached between Opec (Organization of the Petroleum Exporting Countries) and non-Opec oil-producing countries to cut output.
Opec on Dec 10, 2017, persuaded 11 non-member states to cut oil production by a combined 558,000 bpd starting Jan 1. This production cut pact was to be executed through to the end of June 2017.
The output cut announced last December has spurred hopes of a supply glut easing and oil market rebalancing, lifting oil prices to the US$50s earlier this year. Oil prices were challenged of late by a ramp-up in US shale output and slipped to under US$50 a barrel in recent weeks.