NORWAY DATA: June crude output slips 12% to meet cut pledge, but boosted by Sverdrup

London — Norway cut its June crude production by 12% from May levels, fulfilling promises to support global production cuts, but at 1.86 million b/d its overall oil output was still 33% higher than a year earlier, data published July 17 showed.

Europe's largest oil producer recorded crude output of 1.54 million b/d, up 46% year on year, thanks to the giant Johan Sverdrup field, which came on stream in October, but also reflecting relatively strong production from other fields, as normal summer maintenance was deferred due to the coronavirus threat to workers.

Norway agreed in April to join in international production cuts intended to alleviate the collapse in oil markets, although it is not formally part of the OPEC+ producer group, and its cuts, starting in June, came a month later than the OPEC+ cuts.

Its June crude production was 4% under the maximum permitted by Norway's commitment, of 1.609 million b/d, the Norwegian Petroleum Directorate noted.

Norway agreed to impose the steepest cuts in June, with a reduction in crude output of 250,000 b/d, to be eased to 134,000 b/d for the second half of the year.

The commitment does not cover condensate and natural gas liquids, which accounted for 315,000 b/d of the country's June liquids production.

Norway set a "reference" level for its crude output cuts of 1,859,000 b/d, which allowed for some increase in Johan Sverdrup production as it was still in the process of ramping up at the time of the commitment.