OPEC talks oil output growth from major producers in Europe

Economy Materials 14 April 2023 13:00 (UTC +04:00)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, April 14. OECD Europe's liquids output in 2023 is expected to increase by 0.2 mb/d to average 3.8 mb/d, Trend reports via monthly oil outlook from OPEC.

According to the report, the forecast has been slightly downgraded by 19,000 b/d from previous month's outlook.

As for the main producers, Norway's oil production is projected to expand by 0.2 mb/d, revised down by 20,000 b/d, compared to the previous month's assessment, to average 2.1 mb/d, which is mainly due to lower-than-expected output in 1Q23.

"A number of small-to-large projects are scheduled to ramp up in 2023. The Johan Sverdrup ramp-up is projected to be the main source of growth following the Phase 2 start-up in December 2022. However, it seems that field underperformance remains an issue throughout this year. Besides, Aker BP has started production from the Frosk field, which has an estimated recoverable reserve of around 10 million barrels of oil equivalent. The field is tied back to the Alvheim FPSO located about 24km away. Frosk is to be the first of three tie-backs to the Alvheim field, including Kobra East & Gekko and Tyrving," the report said.

Meanwhile, the UK's liquids production in 2023 is forecast to increase by 28,000 b/d to average 0.9 mb/d, which is mostly unchanged from the previous outlook.

"A number of new fields, including Seagull, the Penguins Redevelopment, Captain EOR and Saturn Banks phase 1 will help offset base declines in 2023. However, project sanctioning will be essential to maintain future oil and gas output, as UK production has been in long-term decline. In addition, UK offshore workers demanding better pay and conditions have voted in favor of a series of short strikes over the coming months that might bring parts of the UK’s oil and gas platforms to a standstill – if the labor issues are not resolved," the report added.