Algeria To Slash Oil Production As From 1 January 2017 As Part of Algiers Agreement

Algeria’s energy ministry has sent instructions to the national oil sector’s regulator to begin production cuts of 50,000 barrels per day with effect starting from January 1st 2017.

The December 11 letter conveyed to the regulator, the National Agency for the Valorization of hydrocarbons resources or “Alnaft”, asks that the reduction of 50,000 barrels/d of hydrocarbon liquids will be divided equally among all contractors, energy ministry sources told “Echorouk”.

The instructions follow Algeria’s participation in the latest gathering of OPEC producers in Vienna over the weekend, where the group managed to secure the support of 11 other oil nations in a joint output cut pact.

Although it only amounts to an extra 258,000 b/d to the 1.5 million barrels/d in cuts agreed between OPEC and Russia on November 30 in Vienna, the accord marks the first collaborative production cut agreed to between OPEC and non-OPEC producers in 15 years.

OPEC itself agreed on November 30 to slash its production by 1.2 million b/d from October levels to around 32.5 million b/d from the start of January along with a commitment from Russia to curtail output by 300,000 barrels per day.

Algeria’s contribution is to cut production by 50,000 b/d from October levels of 1.089 million b/d to 1.039 million b/d from January, for at least six months.