New Year's resolution, OPEC-style: MENA upstream month in brief

OPEC agreed to cut production by 1.2 million b/d which represents a major policy shift. This means a production cut of 4.5% for most, but not all, members. Under the deal, Iranian production is likely to increase. Total signs MoU to develop South Pars Phase 11 in Iran, potentially the first deal with a foreign major under an IPC. The agreement reflects confidence the nuclear deal will survive Donald Trump’s election to the White House. The Egyptian government floated its currency and cut subsidies on fuel and gas to secure a US$12 billion loan from the IMF. Eni sold 10% of the Zohr gas field to BP for a total US$525 million. The Israel licence round was launched for 24 deepwater blocks.