Image courtesy of Petronas.

Malaysia’s Petronas said on Wednesday that it will cut production by up to 20,000 per barrel as part of the production deal signed by non-OPEC producers earlier this month.

The state-owned company said it has decided to make “adjustment to Malaysia’s crude oil production” following production cut deals reached by OPEC and non-OPEC producers.

The cuts will be effective starting in January and will trim the company’s average production by up to 20,000 bpd from 2016 production levels.

According to government data seen by Reuters, Petronas has produced 648,000 bpd this year, a 2 percent year-over-year decline.

“This voluntary adjustment, taking into consideration prevailing market conditions and prospects,” Petronas said.

According to U.S. Energy Information Administration, Malaysia is Southeast Asia’s second-largest oil producer behind Indonesia.

The country produced nearly 670,000 barrels per day of petroleum and other liquids in 2013, down from a peak of 844,000 bpd in 2003.

Earlier this month, OPEC members agreed to cut production down to 32.5 million barrels per day, a more than 1 million bpd reduction from the group’s record-breaking October production level.

The cuts are effective as of January 1.

More than a dozen non-OPEC producers, including Malaysia, have also agreed to reduce production by a combined 558,000 bpd.

OPEC said the reductions can either be done voluntarily or through managed decline, in accordance with an “accelerated schedule.”

The non-OPEC cuts will also be effective as of January 1 for an initial duration of six months.

OPEC said the production plan will be extendable for an additional six months “to take into account prevailing market conditions and prospects.”


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