Gazprom Neft maintains its production plans
By Nigar Abbasova
Russian oil producer Gazprom Neft intends to maintain its plans on oil production in 2017.
CEO of the company Alexander Dyukov told reporters that the company will stay committed to the reduction deal reached with the OPEC, however, it will not exceed the reduction quota.
The company earlier announced its plans to increase oil production by 4.5-5 percent in 2017, less than it had intended before Russia joined a deal to cut global production.
In January 2017, Russia cut its oil production by about 100,000 barrels per day (bpd), implementing a third of what the country pledged.
Russian crude and condensate output is expected to decline gradually from September-December 2016 production levels, and to reach the announced 300,000 bpd output cut at the end of the first quarter of 2017. The country earlier gained the position of the world’s biggest oil producer leaving Saudi Arabia behind.
The country pumped 10.49 million barrels a day in December, down 29,000 barrels a day from November. For 2017, the Russian energy ministry forecasts oil production at the level of 548-551 million tons, or 11.01-11.07 million bpd.
Meanwhile Energy Minister Alexander Novak said that the volume of oil production in Russia in February will be lower than in January.
The production cut in February will be higher than 117,000 barrels per day in January, RIA Novosti quoted the minister as saying.
Recalling that OPEC and non-OPEC countries, participating in Vienna output cut deal, have reached the compliance level of 86 percent, Novak expressed confidence that the oil producers will fulfill their obligations under this deal.
In tote, producers are looking to cut a total of 1.8 million barrels a day from the market in the first half of 2017, ousting the problem of glut and raising prices.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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