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“Rosneft” will not support the OPEC agreement on the oil production freeze

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“Rosneft” will not support the OPEC agreement on the oil production freeze

“Rosneft” will not support the OPEC agreement on the oil production freeze
October 11
15:00 2016

Reuters reported that the company “Rosneft” is not going to limit or freeze the oil production according to the potential agreement with the OPEC. This statement was made by Igor Sechin, the head of the oil company.

At the conference in Istanbul Sechin answered the corresponding questions from the media: “Why should we do this?” He also noted that he doubted that such countries of the cartel as Iran, Saudi Arabia and Venezuela would limit their oil production. He explains this by the fact that if fuel prices are above $ 50 per barrel, the projects for the extraction of shale oil in the USA will be profitable again.

Reuters notes that the state corporation «Rosneft» produces up to 40% of the volume of oil production in Russia. The agency also reported that Igor Sechin had the negative attitude to the OPEC. His statements clearly demonstrate the complexity for the Russian Federation and its companies regarding the freezing or reduction of the production in the framework of a potential deal with the OPEC.

A day earlier, on October 10, Russian President announced Russia’s readiness to accede to the OPEC agreement. The President, without going into details, said he believed that decision was the only right one.

On Monday, Igor Sechin stated that the company intended to significantly increase the oil production by the results of 2016. In particular, he answered the question about the raw materials production in the current year: “There will be a little more. Even not a little – significantly.“ In late September the OPEC member states concluded an agreement on the oil freeze.  It was decided to freeze the production within 32,5-33 million barrels per day. The last negotiations on this issue should be held in November at the cartel meeting in Vienna.

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