Norway has own oil plans

NZOOM Non-Opec Norway, the world's third biggest oil exporter, said on Monday that it had no current plans to cut output and would not automatically match any future measures by Opec to shore up prices.

But Norway's oil minister did not rule out a cut if markets were to become destabilised and prices were at risk of collapse.

"We have no plan for a production cut now - we don't see any reason for a production cut now," Oil and Energy Minister Einar Steensnaes told a joint news conference with visiting Venezuelan Oil Minister Rafael Ramirez.

Steensnaes said that current oil prices were "acceptable."

Ramirez came to Oslo as part of an Opec bid to press nonaligned oil exporters to cooperate with Opec, should it decide to cut output at a meeting in Qatar this week, or later. Opec fears the resumption of Iraqi oil exports will undermine prices.

Steensnaes noted Norway cut its 3.0 million barrel per day output in the first half of 2002, by 150,000 bpd when prices were weak but said that Oslo would not slavishly follow Opec.

"There will be no automatic decision from Norway depending on what Opec does," he said. "The decision is made unilaterally." Norway is the biggest exporter behind Saudi Arabia and Russia.

"I think we managed to stabilise the market in a very problematic situation (in 2002), and we would do that again if necessary," Steensnaes said.

He noted that Norway's revised state budget assumes a price of $US25 per barrel, which he called "normal for the time being."

Oil prices hit fresh 12-month highs on Monday as members of the Organisation of the Petroleum Exporting Countries (Opec) gathered in Qatar. Brent crude in London rose 9 cents to $US27.87 a barrel, and US crude rose 17 cents to $US31.45.

Opec meets in Doha on June 11 and is set to press non-cartel exporters to back its next supply cut.

Earlier on Monday, Ramirez said that non-Opec Mexico was ready to collaborate with whatever Opec decided.

But Ramirez said it was not clear whether Opec would decide to cut output or put off any decision to a later meeting. Prices are at the top end of Opec's $US22-28 preferred price range.

"We don't know at the moment whether we are going to have any production cuts at this Qatar meeting," Ramirez said. "We think that we are going to need another meeting before the conference in September."

"We are going to do whatever is necessary to maintain the price within the (Opec preferred) band," he added.

He said that the market had been strong despite turmoil in Venezuela and Nigeria and the war in Iraq, but it would be the job of the Qatar meeting to make fresh assessments.

"The situation in Iraq is an uncertainty that we have to review, but in any case I believe that the commitment between producers - Opec or non-Opec - is to have stability in the oil market," he said.

Opec invited rival exporters, including Norway, Mexico and Russia, to Qatar, hoping to maintain a fragile partnership that has kept OPEC's basket price near $25 per barrel for four years.

Norway, in line with its customary policy of keeping its distance from the cartel, declined to attend the meeting.