Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

Russia's Rosneft says managing exit from OPEC+ deal is a serious challenge

Published 11/15/2017, 07:45 AM
© Reuters. FILE PHOTO: A logo of Russian state oil firm Rosneft is seen at its office in Moscow
ROSN
-
SIBN
-

By Olesya Astakhova and Vladimir Soldatkin

MOSCOW (Reuters) - Russia's Rosneft (MM:ROSN), the world's top listed oil company by output, sees the exit from a global oil production-cutting deal as a serious challenge, a spokesman for the firm said.

Russian Energy Minister Alexander Novak met Russian oil company executives in Moscow on Wednesday ahead of talks in Vienna at the end of November between OPEC and non-OPEC producers.

The ministry said Russian domestic oil producers are committed to a global deal to cut oil output. It said Novak and the companies would continue consultations on the global oil market situation.

Another meeting was scheduled in a week, oil company officials told reporters.

"The discussions are continuing," said Alexander Dyukov, the head of Gazprom Neft (MM:SIBN).

"The agreement that was signed and has been effective since July ... not so much time has passed since. That's why we need to continue monitoring. We will gather in a week and will discuss."

The gathering in the Austrian capital could decide to extend the current deal further.

OPEC sources last month told Reuters that producers were leaning towards prolonging the agreement until the end of 2018, though the decision could be postponed until early next year depending on the market.

"Speaking about the company's concerns, first of all it was about how to prepare for suspending measures to restrict production," said Rosneft spokesman Mikhail Leontyev.

"This is a serious question. Sooner or later, of course, these measures will be lifted. Now or later, that's a separate question. It's a serious challenge, for which one needs to prepare."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Rosneft is limiting output at its newest fields under the deal, in which Russia has pledged to cut production by 300,000 bpd. The Kremlin-controlled company accounts for about 40 percent of Russia's total oil output.

Eric Liron, a first vice president at Rosneft, on Tuesday said that the company may delay some greenfield projects if the deal is extended beyond its March 31 expiry date.

Leontyev reiterated that Rosneft is sticking to its commitments under the pact but noted that Chief Executive Igor Sechin had expressed concerns over the deal.

Leontyev said Rosneft's tactics towards the deal are being prepared jointly with the Russian state.

Russian President Vladimir Putin last month said that the pact was helping the global economy and should be extended at least until the end of 2018.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.