Russia oil output to be cut from Nov-Dec levels

Russia oil output
Russia oil output will amount to 300,000 b/d in the first half of 2017 as part of its deal with OPEC.  Bashneft photo.

Russia oil output cut will be an “equal cut by all companies”: Alexander Novak

MOSCOW, Dec 1 (Reuters) – Russia plans to cut its oil output from November-December levels as a part of its agreement to stabilise global oil market together with OPEC, Energy Minister Alexander Novak told reporters on Thursday.

opec
Click here to watch production manager Dave Kuhnert explain how EndurAlloy™ production tubing has cut Crownquest Operating LLC’s Permian Basin well operating costs and extended well run-times.

Novak said a day earlier Russia was ready to cut oil production by up to 300,000 barrels per day in the first half of 2017 as a part of its agreement with OPEC.

“It will be an equal approach, an equal cut by all (Russian) companies, but we will work out (details) additionally… In general, there is an understanding that this (cut) should be equal in percents for all,” Novak said. He did not elaborate.

Rosneft is Russia’s top oil producer, followed by Lukoil, Surgutneftegaz and Gazprom Neft . Rosneft and Gazprom Neft declined to comment, while Lukoil and Surgut did reply to Reuters requests seeking a comment.

Russia’s oil output set a new post-Soviet era record high in October, rising 0.1 per cent from September to 11.2 million barrels per day (b/d).

Novak also said Azerbaijan, Kazakhstan, Mexico, Oman, Bahrain and other non-OPEC producers could join the deal.

Other non-OPEC countries are expected to contribute a cut of 300,000 b/d in addition to Russia.

(Reporting by Katya Golubkova and Denis Pinchuk; additional reporting by Oksana Kobzeva; writing by Maria Kiselyova; editing by Susan Thomas)

trans mountain
Ph: 432-978-5096 Website: www.mapleleafmarketinginc.com