Russia’s energy company Gazprom Neft hopes to reach an accord to make less production cuts than expected Gazprom Neft’s CEO Alexander Dyukov said Friday.
Russia’s energy company Gazprom Neft hopes to reach an accord with other Russian oil companies to make less production cuts than expected considering proportion of the firm in Russia’s total oil output, by using the other companies’ production quotas, Gazprom Neft’s CEO Alexander Dyukov said Friday.
On Wednesday, the representatives of Russian oil producers at the meeting with Russian Energy Minister Alexander Novak agreed to cut their oil output proportionally with their shares in total production. Such decision was made within the framework of agreement between the Organization of the Petroleum Exporting Countries (OPEC) and oil producing cwhich are not members of the cartel. “We hope that we will be able to agree with other companies to use their quotas and that the volume of our cuts would be lower that it should be. If we do not agree with other companies, then we will decrease the production proportionally, like others,” Dyukov said. In November, OPEC agreed to cut oil production by 1.2 million barrels per day to 32.5 million barrels per day for the whole cartel from next year. On December 10, OPEC finished a meeting with non-OPEC countries in Vienna, at which non-OPEC countries decided to cut oil output by 558,000 barrels per day with Russia cutting the output by 300,000 barrels per day from January 2017. Never miss a story again — sign up to our Telegram channel and we’ll keep you up to speed!