Image copyright Reuters Image caption A worker checks a pipe in a Siberian oil field in Russia.

Eleven oil-producing countries, who are not members of the Opec oil cartel, have agreed to cut their output to boost prices.

The group of states, which includes Russia, said on Saturday that they will cut supplies by 558,000 barrels per day.

Opec announced last month that it would be slashing its own production to ease an oversaturated global market.

It is the first time in 15 years that a global pact has been struck.

"I am happy to announce that a historic agreement has been reached," said Qatar's Energy Minister, Mohammed Bin Saleh Al-Sada, whose country holds Opec's rotating presidency.

The agreement was made at a meeting at Opec's Vienna headquarters.

Opec, the Organization of Petroleum Exporting Countries, has already committed to halting the supply of 1.2 million barrels a day, starting from January.

Opec said then it was seeking for non-member states to also lower their output, and Russia had signalled it would co-operate.

The moves come after more than two years of depressed oil prices, which have more than halved since 2014, due to a supply glut on the market.

Among the non-Opec countries attending the meeting were Azerbaijan, Oman, Mexico, Malaysia, Sudan, South Sudan and Bahrain.

Opec will also have its next meeting on 25 May 2017 to monitor the progress of the deal.

What and who is Opec?</s>Tórshavn, Faroe Islands, 2016-12-11 23:56 CET (GLOBE NEWSWIRE) -- Atlantic Petroleum (NASDAQ OMX Copenhagen: ATLA DKK and Oslo Stock Exchange: ATLA NOK) announces that further to decisions of the joint operating committees of UKCS Licences P.1606 and P.1607 taken at special meetings held on Friday 9th December 2016, notices have today been given pursuant to Clause 5.3.2(b) of the Joint Operating Agreements for UKCS Licences P.1606 and P.1607 removing Iona Energy Company (UK) Limited forthwith as the operator of those licences. 



Atlantic Petroleum North Sea Limited was selected at the said special meetings to be appointed as the new operator, subject to any necessary approval of the Oil and Gas Authority. 



Ben Arabo CEO said: 



"The Orlando development and Kells are very important assets for Atlantic Petroleum and we will be working closely with the authorities, license partner and all stakeholders on the way forward on the assets. We look forward to updating further in the near future." 



Atlantic Petroleum in brief: 



Atlantic Petroleum participates in oil and gas joint ventures with reputable, international partners. Atlantic Petroleum P/F is based in Tórshavn, Faroe Islands, and the Company currently has subsidiaries and offices in London, UK and Bergen, Norway. Atlantic Petroleum's existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange. 



Further Details: 



Further details can be obtained from Ben Arabo, CEO, tel +298 550100 (ben.arabo@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo. 



On the website, it is also possible to sign up for the Company's e-mail newsletter. 



Announcement no.21/2016 



Issued 11-12-2016 



 P/F Atlantic Petroleum Yviri við Strond 4 P.O. Box 1228 FO-110 Tórshavn Faroe Islands 



 Telephone +44 203 879 0524 Website: www.petroleum.fo E-mail: petroleum@petroleum.fo</s>Dec 13 State-owned Qatar Petroleum said on Tuesday that Qatar's oil production would fall from Jan. 1 in line with last month's agreement for OPEC members to cut output.

"We have started advising our customers of the expected reductions in oil deliveries to ensure the State's compliance with OPEC's allocations," Qatar Petroleum's chief executive Saad Sherida al-Kaabi said in a statement. (Reporting by Andrew Torchia; Editing by Mark Potter)</s>OPEC and non-OPEC producers on Saturday reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices that overstretched many budgets and spurred unrest in some countries.

With the deal finally signed after almost a year of arguing within the Organization of the Petroleum Exporting Countries and mistrust in the willingness of non-OPEC Russia to play ball, the market’s focus will now switch to compliance with the agreement.

OPEC has a long history of cheating on output quotas. The fact that Nigeria and Libya were exempt from the deal due to production-denting civil strife will further pressure OPEC leader Saudi Arabia to shoulder the bulk of supply reductions.

Opinion: OPEC deal may come back to haunt Saudi Arabia

ROB Magazine: The elusive billionaire who wants to make the oil sands greener

Gordon Pape: It’s too soon to celebrate an energy rebound

Russia, which 15 years ago failed to deliver on promises to cut in tandem with OPEC, is expected to perform real output reductions this time. But analysts question whether many other non-OPEC producers are attempting to present a natural decline in output as their contribution to the deal.

“This is a very historic meeting ... This will boost the global economy and will help some OECD countries to reach their inflation targets,” OPEC Secretary-General Mohammed Barkindo told reporters ahead of the talks, referring to the Organization for Economic Cooperation and Development, which groups most of the world’s richest economies.

Last week, OPEC agreed to slash output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting as much as 486,000 bpd.

On Saturday, producers from outside the 13-country group agreed to reduce output by 562,000 bpd, slightly short of the initial target of 600,000 bpd, according to two OPEC sources.

“They are all enjoying higher prices and compliance tends to be good in the early stages. But then as prices continue to rise, compliance will erode,” said veteran OPEC watcher and founder of Pira Energy consultancy Gary Ross.

“Non-OPEC has also made the largest contribution we have ever seen,” said Ross, adding that he believed Russia would curtail output in line with its pledge of 300,000 bpd.

He added OPEC would target an oil price of $60 per barrel as anything above that could encourage rival production.

Oil prices have more than halved in the past two years after Saudi Arabia raised output steeply in an attempt to drive higher-cost producers such as U.S. shale firms out of the market.

The plunge in oil to below $50 per barrel - and sometimes even below $30 - from as high as $115 in mid-2014 has helped reduce growth in U.S. shale output.

But it also hit the revenues of oil-dependent economies including Saudi Arabia and Russia, prompting the two largest exporters of crude to start their first oil cooperation talks in 15 years.

Apart from Russia, the talks on Saturday were attended by or had comments or commitments sent from non-OPEC members Azerbaijan, Bahrain, Bolivia, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan and South Sudan.

Many non-OPEC countries such as Mexico and Azerbaijan face a natural drop in oil production and some analysts expressed doubts those declines should be counted as cuts.

Industry sources said Oman and Kazakhstan had yet to inform their foreign partners on joint oilfields about possible output cuts.

On Friday, Saudi Arabia told its U.S. and European customers it would reduce oil deliveries from January, signaling it had already started implementing cuts.

OPEC producers Iraq, Kuwait and the United Arab Emirates have also told buyers of their crude about planned reductions.</s>OPEC and non-OPEC producers on Saturday reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices that overstretched many budgets and spurred unrest in some countries.

With the deal finally signed after almost a year of arguing within the Organization of the Petroleum Exporting Countries and mistrust in the willingness of non-OPEC Russia to play ball, the market’s focus will now switch to compliance with the agreement.

OPEC has a long history of cheating on output quotas. The fact that Nigeria and Libya were exempt from the deal due to production-denting civil strife will further pressure OPEC leader Saudi Arabia to shoulder the bulk of supply reductions.

Opinion: OPEC deal may come back to haunt Saudi Arabia

ROB Magazine: The elusive billionaire who wants to make the oil sands greener

Gordon Pape: It’s too soon to celebrate an energy rebound

Russia, which 15 years ago failed to deliver on promises to cut in tandem with OPEC, is expected to perform real output reductions this time. But analysts question whether many other non-OPEC producers are attempting to present a natural decline in output as their contribution to the deal.

“This agreement cements and prepares us for long-term co-operation,” Saudi Energy Minister Khalid al-Falih told reporters after the meeting, calling the deal “historic”.

Russian Energy Minister Alexander Novak told the same news conference: “Today’s deal will speed up the oil market stabilization, reduce volatility, attract new investments.”

Last week, OPEC agreed to slash output by 1.2 million barrels per day from Jan. 1, with top exporter Saudi Arabia cutting as much as 486,000 bpd. Falih said on Saturday that Riyadh may cut even deeper.

On Saturday, producers from outside the 13-country group agreed to reduce output by 558,000 bpd, short of the initial target of 600,000 bpd but still the largest contribution by non-OPEC ever.

Of that, Russia will cut 300,000 bpd, Novak said. He added it would be gradual and by the end of March Russia would be producing 200,000 bpd less than its October 2016 level of 11.247 million bpd – Russia’s highest production estimate so far.

Russian output would fall to 10.947 million bpd after six months, Novak said.

“They are all enjoying higher prices and compliance tends to be good in the early stages. But then as prices continue to rise, compliance will erode,” said veteran OPEC watcher and founder of Pira Energy consultancy Gary Ross.

Amrita Sen from consultancy Energy Aspects said: “Compared to two months ago when the prospects of a deal were fading rapidly, this is a huge turnaround. Skeptics will argue about compliance but the symbolism in itself cannot be understated.”

Ross added that OPEC would target an oil price of $60 per barrel as anything above that could encourage rival production.

Oil prices have more than halved in the past two years after Saudi Arabia raised output steeply in an attempt to drive higher-cost producers such as U.S. shale firms out of the market.

The plunge in oil to below $50 per barrel – and sometimes even below $30 – from as high as $115 in mid-2014 has helped reduce growth in U.S. shale output.

But it also hit the revenues of oil-dependent economies including Saudi Arabia and Russia, prompting the two largest exporters of crude to start their first oil co-operation talks in 15 years.

In April in Doha, an attempt to clinch a deal collapsed. Novak said talks between OPEC and non-OPEC had been rescued after Saudi Arabia replaced veteran oil minister Ali al-Naimi with Falih, who “had fresh views and ideas”.

Apart from Russia, the talks on Saturday were attended by or had comments or commitments sent from non-OPEC members Azerbaijan, Bahrain, Bolivia, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan and South Sudan.

Novak said OPEC and the non-OPEC countries at the meeting were responsible for 55 per cent of global output. Their joint reduction of around 1.8 million bpd would account for about 2 per cent of global oil supply.

Many non-OPEC countries such as Mexico and Azerbaijan face a natural drop in oil production and some analysts expressed doubts those declines should be counted as cuts.

Oman said it would cut output by 45,000 bpd and Kazakhstan said it would try to reduce by 20,000 bpd next year.

“While a lot of the countries are formalizing natural declines, cuts by Russia, Kazakhstan and Oman are real. Russia and Kazakhstan were between them expected to add 400,000 bpd to production next year,” Sen of Energy Aspects said.</s>International Brent crude LCOc1 was trading at $55.67 per barrel at 0430 GMT, virtually unchanged from its last settlement.

U.S. West Texas Intermediate (WTI) crude CLc1 was down 10 cents at $52.73 a barrel, with U.S. producers not participating in production cuts.

Traders said there was some profit-taking after oil shot to mid-2015 highs earlier this week after the Middle East-led Organization of Petroleum Exporting Countries (OPEC) and other exporters led by Russia reached a deal to cut output by almost 1.8 million barrels per day to reduce oversupply and prop up prices.

But they added that oil markets were still broadly supported by the deal to crimp output.

"The market is putting a lot of importance on the commentaries coming out of OPEC and non-OPEC (and) the market is giving OPEC the benefit of the doubt that cuts will be implemented and achieved," said Michael McCarthy, chief market strategist at Sydney's CMC Markets.

However, he added that prices would "turn negative very quickly if the market feels compliance won't happen".

BMI Research said that the agreement would likely push Brent over $60 per barrel.

In a sign that producers are acting on their plans, Abu Dhabi National Oil Company (ADNOC) told customers it would cut supplies by 3-5 percent.

The producer from the United Arab Emirates (UAE) will reduce Murban and Upper Zakum crude supplies by 5 percent and Das crude exports by 3 percent.

ADNOC's cuts will mostly hit Asia, although refiners said they fell within contractual allowances under which ADNOC can alter agreed supply volumes.

Meanwhile, China's November crude output fell 9 percent on a year earlier to 3.915 million barrels per day, data showed on Tuesday, but recovered from October's 3.78 million bpd, which was the lowest in more than seven years.

That came as China's refinery throughput hit a daily record in November of 11.14 million bpd, up 3.4 percent year-on-year.

"Declines in Chinese ... crude oil output and expansion of its strategic crude reserves underpin our view for China's crude oil imports to strengthen over the coming quarters," said BMI Research.

In India, Asia's No.2 oil consumer behind China, fuel demand rose 12.1 percent in November compared with the same month last year, hitting 16.64 million tonnes (4.07 million bpd).</s>Oil jumped to the highest since July 2015 after Saudi Arabia signalled it is ready to cut output more than earlier agreed while non-Opec countries including Russia pledged to pump less next year, strengthening the coordinated commitment by the world’s largest producers to tighten supply.

Futures rose as much as 5.8 per cent in New York and 6.6 per cent in London. Saudi energy minister Khalid Al-Falih said Saturday the biggest crude exporter will “cut substantially to be below” the target agreed last month with members of Opec. Mr Al-Falih’s comments followed a deal by 11 non-Opec countries including Mexico to join forces with the group and trim output by 558,000 barrels a day next year, the first pact between the rivals in 15 years.

Futures in New York have gained about 20 per cent since the Organization of Petroleum Exporting Countries announced November 30th it will cut production for the first time in eight years. Saudi Arabia, which led Opec’s decision in 2014 to pump at will, is leading efforts to take back control of the market. The Opec and non-Opec plan encompasses countries that pump 60 per cent of the world’s crude, but excludes major producers such as the US, China, Canada, Norway and Brazil.

“This is a very powerful message that producers want to balance the market,” said Chris Weston, chief market strategist in Melbourne at IG Ltd. “As a statement of intent, this is about as bullish as it gets.”

West Texas Intermediate for January delivery rose as much as $3.01 to $54.51 a barrel on the New York Mercantile Exchange, the highest intraday level since July 6th, 2015. The contract was trading at $53.96 at 1.04pm in Hong Kong. Prices gained 3.5 per cent over the previous two sessions to close at $51.50 a barrel on Friday.

Brent for February settlement jumped as much as $3.56 to $57.89 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a $1.82 premium to February WTI.

“Assuming reasonable compliance levels, these cuts will be enough to push the market into deficit,” Neil Beveridge, a senior analyst at Sanford C Bernstein in Hong Kong, said by e-mail. “This level of coordination is unprecedented.”

Oil and gas companies in Asia gained, with the MSCI AC Asia Pacific Energy sub-index rising 0.7 per cent, compared with a 0.4 per cent decrease in the broader gauge. Chinese producer Cnooc Ltd climbed 0.6 per cent, while Australia’s Santos Ltd added 5.1 per cent and Japan’s Inpex Corp advanced 0.6 per cent.

“I can tell you with absolute certainty that effective January 1st we’re going to cut and cut substantially to be below the level that we have committed to on November 30th,” Mr Al-Falih said Saturday in Vienna. The Saudi minister added that the country was ready to cut below 10 million barrels a day, a level it has sustained since March 2015.

Mr Al-Falih and his Russian counterpart Alexander Novak also revealed Saturday they have been working for nearly a year on the agreement, meeting multiple times in secret. Opec two weeks ago agreed to reduce its own production by 1.2 million barrels a day, and Saudi Arabia has long insisted that any cuts by the group be accompanied by action from other suppliers.

“The reality is both Saudi and Russia desperately need higher prices with oil their number-one export,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. “Agile US shale producers will jump back into production on West Texas well before $60 a barrel.”

Data on Friday showed US explorers rushed back to the shale patch with the largest weekly addition of oil rigs since July 2015. Rigs targeting crude in the US rose by 21 to 498, the most since January, according to Baker Hughes.

A normalisation of crude inventories is the goal of the announced output cuts, rather than higher prices, which would “unleash a sharp production response” from global suppliers including the US, Goldman Sachs Group analysts including Damien Courvalin wrote in a research note dated December 11th.</s>Saudi Arabia signalled it’s ready to cut oil production more than expected, in a surprise announcement made minutes after Russia and several other non-OPEC countries pledged to curb output next year.

Taken together, the Organization of Petroleum Exporting Countries’s first deal with its rivals since 2001 and the Saudi comments represent a forceful effort by producers to wrest back control of the global oil market, depressed by persistent oversupply and record inventories.

“This is shock and awe by Saudi Arabia,” said Amrita Sen, chief oil analyst at Energy Aspects Ltd. in London. “It shows the commitment of Riyadh to rebalance the market and should end concerns about OPEC delivering the deal.”

Oil prices have surged more than 15 per cent since OPEC announced Nov. 30 it will cut production for the first time in eight years, rising this week briefly above $55 (U.S.). The price rise has propelled the shares of energy groups from Exxon Mobil Corp. to shale firms such as Continental Resources Inc.

Riyadh agreed with OPEC on Nov. 30 to cut its production to 10.06 million barrels a day, down from a record high of nearly 10.7 million barrels in July.

“I can tell you with absolute certainty that effective Jan. 1, we’re going to cut and cut substantially to be below the level that we have committed to on Nov. 30,” Saudi Oil Minister Khalid al-Falih said after Sunday’s meeting.

The Saudi minister said he was ready to cut below the psychologically significant level of 10 millions b/d – a level it has sustained since March, 2015 – depending on market conditions.

Mr. Al-Falih made his announcement after non-OPEC countries agreed to reduce production by 558,000 barrels a day, suggesting he had been waiting for the deal before committing to further cuts. The non-OPEC reduction is equal to the anticipated demand growth next year in China and India, according to data from the International Energy Agency.

The OPEC and non-OPEC pact encompasses countries that pump 60 per cent of the world’s oil, but excludes major producers such as the United States, China, Canada, Norway and Brazil.

“The deal speaks volumes about the Saudi commitment to rebalance the market,” said Yasser Elguindi, a veteran OPEC watcher with consultant Medley Global Advisors. “No one is talking any more about $30-a-barrel oil.”

Saudi Arabia has long insisted that any reductions from the group should be accompanied by action from other suppliers. OPEC two weeks ago agreed to reduce its own production by 1.2 million b/d. Mr. Al-Falih and his Russian counterpart, Alexander Novak, revealed they have been working for nearly a year on the agreement, meeting multiple times in secret.

“This is truly a historic event,” Mr. Novak said. “It’s the first time so many oil countries from different parts of the world gathered in one room to accomplish what we have done,” he added, speaking alongside Mr. Al-Falih.

Russia pledged to cut output by 300,000 barrels a day next year, down from a 30-year high last month of 11.2 million barrels a day. Mexico agreed to cut 100,000 barrels, Azerbaijan by 35,000 barrels and Oman by 40,000 barrels.

Mexico’s contributions would be made through “managed natural decline,” delegates said, meaning it won’t cut output deliberately and rather let production fall as its aging fields yield less. Other countries such as Azerbaijan will probably follow the same route. The use of natural decline as part of the non-OPEC deal is likely to dampen its impact.

Still, in a surprise move, Kazakhstan pledged a 20,000-b/d cut after coming under strong diplomatic pressure. The Kazakh cut is particularly important because the Asian country’s output is rising after a giant oil field started pumping in October.

The chain of announcements signal that Saudi Arabia is trying to push oil prices above $60 a barrel – and perhaps closer to $70 a barrel – as it attempts to fill a fiscal hole and prepares a partial flotation of its crown jewel, state-owned oil company Saudi Aramco, in 2018. The move toward higher prices may backfire, however, as it risks the resurgence of U.S. shale drilling from Texas to North Dakota.

“Emotionally, the market will likely rally,” said Adam Ritchie, founder of AR Oil Consulting. “But beyond rebalancing supply and demand, we have excess inventory that is astronomic that will continue to keep a lid on prices.”

The focus of the market will turn now to compliance, as historically OPEC and non-OPEC countries have cut far less than promised. In late 2001, for example, Moscow promised to reduce output, but actually it increased it the following year.

“The oil-price crash impelled terrified producers into collective supply restraint agreements,” said Bob McNally, founder of consultant Rapidan Group in Washington and a former White House oil official. “Occasionally, these loose, ad-hoc producer agreements enjoyed temporary success, but all eventually failed due to cheating.”</s>Persons stand in front of the headquarters of the Organization of the Petroleum Exporting Countries, OPEC, in Vienna, Austria, Saturday, Dec. 10, 2016. OPEC member states are meeting with Russia and other non-OPEC countries in Vienna for talks about a reduction in oil production. Secretary General Mohammed Barkindo said the discussions began Saturday in a "positive atmosphere" at the headquarters of the oil producers' cartel. (AP Photo/Ronald Zak)</s>TORONTO — Oil prices have soared following a weekend agreement to cut back production by 11 non-OPEC countries.

January crude oil contracts were at US$53.63 per barrel as North American stock markets opened — up $2.13 from late Friday. Earlier, they traded as high as US$54.51 a barrel — a level that hasn’t been seen since the middle of last year.

The Canadian dollar was at 76.14 cents US, up 0.27 of a U.S. cent from Friday. The loonie hasn’t closed above 76 cents US since mid-October, according to Bank of Canada records.

The S&P/TSX composite index was up 59.80 points at 15,372.00 shortly after North American markets opened.

In New York, the Dow industrial average was up 36.06 points at 19,792.91 and the S&P 500 was up 0.10 point at 2,259.63. The Nasdaq composite index was down 22.28 points at 5,422.22.

January natural gas contracts were down 21 cents at US$3.54 per mmBtu. February gold contracts were up $1.10 at US$1,163.00 and March copper contracts were down one cent at US$2.64 a pound.

The Organization of Petroleum Exporting Countries reached a deal on Saturday that will see key non-member countries agree to cut 558,000 barrels per day for six months starting Jan. 1.

That’s on top of an OPEC decision Nov. 30 to reduce member output by 1.2 million barrels a day.

A prolonged decline in global crude prices began in late 2014 after key OPEC members decided to keep production levels high, despite a worldwide oversupply.
Non-Organization of Petroleum Exporting Countries agree to cut oil output which will help increase the price of petroleum products in the world market.