French oil giant Total looks to cut output by 5 percent to no more than 3 million barrels of oil equivalent per day in 2020, a press release on its first quarter results out Tuesday shows
MOSCOW (Pakistan Point News / Sputnik - 05th May, 2020) French oil giant Total looks to cut output by 5 percent to no more than 3 million barrels of oil equivalent per day in 2020, a press release on its first quarter results out Tuesday shows.
"The Group now anticipates 2020 production of between 2.95 and 3 million Mboe/d, at a least 5% reduction compared to the previous 2020 forecasts," the company said.
It explained the projected drop in output with the impact of production quotas agreed by the OPEC group of oil producers and their partners, voluntary reductions in Canada, the war in Libya and lower local demand for gas.
Global demand has contracted since early March after the coronavirus crisis broke out and was exacerbated by sustained production. Despite the OPEC+ deal to address the glut, demand remains well below supply, leading to strong inventory builds.
"The anticipated gradual increase in demand linked to the end of the Covid-19 crisis may not bring a rapid resolution of the oil crisis given the time required to return inventories to normal levels," the company warned.
Total, a global oil major and the world's second largest private LNG operator, increased its hydrocarbon production in the first quarter by 5 percent to 3 million barrels of oil equivalent per day.
In the liquefied natural gas segment, Total anticipates production to slow down in the second and third quarter after the global economic shutdown led to lower demand. The drop in oil prices is expected to push LNG long-term contract prices down in the second half.
