“LUKOIL” is ready to join the freezing of oil production in the presence of government guidelines. As reported TASS, told journalists the Vice-President of the company Leonid Fedun. “I would like to answer for “LUKOIL” – if it is a government Directive, we will join. I’m sure you’ll join”, he said.

Fedun stressed that such a solution will support all oil companies, “do not doubt”. However, they would like to count on easing of the tax burden by reducing production.

“When you start to fall prey, then begin a more meaningful dialogue. Yet for all our arguments I say: are you crying that year, and production is increasing. Answer, production is growing, because we cried. Production grows only where there are benefits. But yet we do not hear”, – added the Vice-President of the largest private oil company in Russia.

According to him, Russia needs a higher price of oil, and the oil industry is the main source of filling the budget. Requires only a consolidated position of OPEC.

The decline of oil production by 1.5-2% in Russia, enough said Leonid Fedun. “Think back to January 2016. It’s around 1.5-2% reduction, that is enough,” said he, answering the question of how it would be useful a decrease in production, if such offer arrives from OPEC.

“The OPEC meeting will be held in November. If all goes well, Russia will join. But we need a consolidated position of OPEC. OPEC controls 50% of the world’s oil sales, and if the cartel will make the decision on the freezing of production, then Russia as the second largest producer of ready,” – said Vice-President of the company.

We will note, earlier on Tuesday the head of “Rosneft” Igor Sechin told Reuters that the state will not limit oil production in the framework of the announced on the eve of the deal between Russia and OPEC to stabilize the oil market. Sechin also expressed doubt that other parties to the agreement, including Saudi Arabia, Iran and Venezuela, will reduce its volume.

Press Secretary of the President of Russia Dmitry Peskov said that the words of Igor Sechin, was given without proper context, adding that the Kremlin does not see “any contradiction” between the statement Sechin and the position of the President of Russia.

Comments of the heads of major oil companies in the country, obviously, due to the fact that the President of Russia Vladimir Putin on Monday announced Russia’s accession to the agreement of OPEC countries to limit oil production.

The OPEC members at an informal meeting on September 28 in Algeria in the framework of the XV International energy forum, despite the skepticism of the participants prior to the event, were able to agree on limiting crude oil production at the level of 32.5-33 million barrels per day.

Earlier the Minister of oil of Iran Bijan Namdar Zanganeh said that OPEC will create a coordination Committee, which in November will present the final proposal to limit oil production. Should also set individual quotas for countries.

Russia will announce its proposal for the restriction of oil production after the OPEC members will make the final decision, said the head of the Ministry of energy Alexander Novak. It is expected that a final decision can be made at the November meeting of the organization.

Experts, however, warn that the new initiative of OPEC is only a statement of intent, members of the cartel producers controlling less than half of world production, has so far failed to agree on who and how reduces the prey, not to mention to sign the binding document.



“LUKOIL” is ready to join the freezing of oil production 11.10.2016

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