Regulation of Norwegian oil production

The oil market situation has improved considerably since the production restraints were implemented by OPEC and other oil producing countries, among them Norway and Mexico. The higher oil prices we see today represent a tighter market with lower stocks.

The oil demand is seasonal, with high demand during winter. In summer the demand usually declines. Nevertheless, to avoid too tight an oil market, it is necessary to increase the production.

The restraints on the Norwegian oil production will therefore be reduced from 200 000 bbls/day in 1 ^st> quarter to 100 000 bbls/day in 2 ^nd> quarter 2000. This will contribute to stabilize the oil market. The measure is based on the assumption that other producers will implement their announced cuts, and the market develops as expected today.

A continuation or reduction of Norwegian production restraints after the 2 ^nd> quarter 2000, will be reviewed in light of market developments.