Norway will reduce its oil output by 250,000 barrels per day in June, and by 134,000 bpd in the second half of the fiscal year 2020, the Norwegian Oil ministry announced on Wednesday.
"We will cut Norwegian production by 250,000 barrels per day (bpd) in June and by 134,000 barrels per day in the second half of 2020. In addition, the start-up of production of several fields will be delayed until 2021", Oil Minister Tina Bru said.
According to the ministry, a reduction of 250,000 barrels per day sets the upper limit for oil production at 1,609,000 bpd in June. In the second half of 2020, the upper limit will be 1,725,000 barrels per day.
"Consequently, the total Norwegian production in December 2020 will be 300,000 barrels less per day than originally planned by the companies", Bru added.
The ministry noted the new regulations will expire by the end of 2020.
Norway expects the demand for oil to grow gradually throughout the year as economic activity revives.