Abu Dhabi National Oil Company (ADNOC) has scheduled maintenance at oil fields in March and April that will cut output to meet its OPEC output reduction target, Reuters reported.
Although It was not immediately clear how much exports might fall, field maintenance is expected to reduce Murban crude exports in March and shipments for Das crude in April. Furthermore, ADNOC has also scheduled maintenance at its Ruwais refinery during the same period, which could reduce domestic demand and minimize the impact on exports, Informed Gulf Business.
Production of ADNOC’s flagship onshore Murban crude is close to 1.6mb/d, while offshore Das crude output is near 650,000b/d. The bulk of ADNOC’s crude is exported to Asia. Accordingly, ADNOC agreed in December to supply some refiners in Asia with more oil above contracted volumes for February that could partly compensate for lower supplies in March and April. Yet, any reduction in exports of the two Abu Dhabi light crude grades could improve demand and spot prices for other similar Middle Eastern grades.
The United Arab Emirates (UAE) has committed to cut production by 139,000b/d in the first half of 2017 from 3.013mb/d in October, down 4.61%, as part of a deal by the Organization of the Petroleum Exporting Countries (OPEC) aimed at curbing global oversupply and propping up prices. The emirate of Abu Dhabi is the key contributor to the UAE’s oil production in addition to Dubai where output has been declining.