Lukoil CEO promises to raise output, dividends gradually

MOSCOW, Jun 20 (PRIME) -- Russian oil company Lukoil will raise output and dividends gradually, CEO Vagit Alekperov said at an annual shareholder meeting on Thursday.

“We will continue to raise the quality of business processes, amount of production, dividend payments consistently and will publicly inform you about all events in the life of Lukoil,” Alekperov said.

Russian companies do not have a consolidated position on prolongation of the OPEC plus nonmember oil output reduction deal, Alekperov said.

“The fate of the OPEC plus deal remains vague. There is no consolidated position on the viability of participation in the agreement even among Russian companies,” Alekperov said.

Supply continues to pose threat to stability of the oil market. “Risks for stability of the market on the supply side continue. The U.S. has raised oil production by 35% to almost 12 million barrels per day since December 2016, when the first OPEC plus agreement was signed, and has become the world leader,» Alekperov said.

Alekperov said that Russia’s energy taxation has remained inconsequential with a rising number of individual advantages. But the new system with added-income tax on oil will provide 100 million barrels of oil to Lukoil until 2027, even at the current stage of the pilot project.

According to Alekperov, traditional energy sources are increasingly facing tougher regulation that promote alternative technologies. “We face tougher regulation in the traditional energy spheres, creation of preferences to alternative technologies. We think that forecasts for the future of global energy without hydrocarbons are biased,” Alekperov said.

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