UPDATE 2-Glencore steps up debt-reduction plan, cuts oil output

Thu Feb 11, 2016 7:28am EST
 
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* To cut 2016 oil production by 20 pct as prices slide

* Agrees $500 mln Antapaccay mine deal with Franco-Nevada

* Q4 output of key product copper down 5.7 pct (Adds oil output cuts, shares, analyst comments)

By Eric Onstad

LONDON, Feb 11 (Reuters) - Glencore has taken another step to reduce its debt by selling $500 million of future precious metals output, and deepened oil production cuts after prices fell further.

Glencore said on Thursday it planned to produce about 8.5 million barrels of oil in 2016, down 20 percent from last year and lower than the 9.6 million it had estimated in December.

Brent crude prices have dropped nearly a fifth so far this year, after sliding 35 percent in 2015 due to a glut of supply and concern about weaker demand.

The Swiss-based mining and trading company said overnight it had agreed to sell future precious metals production from its Antapaccay mine in southern Peru to Toronto-based Franco-Nevada

The Antapaccay deal follows Glencore's agreement in November to sell future silver output to Silver Wheaton Minerals for $900 million in cash.   Continued...