Norway will cut its oil production this year to help lifting prices, the Petroleum and Energy Ministry said late on Wednesday.
The Nordic country will cut production by 250,000 barrels a day in June and 134,000 barrels in the second half of the year.
In addition, the start-up of production of several fields will be delayed until 2021.
Consequently, Norway's total production in December 2020 will be 300,000 barrels less per day than originally planned.
"We are currently facing an unprecedented situation in the oil market. Both producers and consumers benefit from a stable market. We have previously stated that we will consider a cut in Norwegian production if several big producing countries implement significant cuts. The decision by the Norwegian Government to reduce Norwegian oil production has been made on an independent basis and with Norwegian interests at heart," Minister of Petroleum and Energy Tina Bru said.
Bru said the cut will include oil fields on the Norwegian Continental Shelf and be fairly distributed between the fields and thereby between companies.
"It will imply a limitation of production for those oil companies with ownership shares in the relevant oil fields. Gas fields are exempt. Thus, the cut will not affect Norwegian gas production or Norwegian gas exports," Bru said.
By Murat Temizer