Report: Tatneft cuts oil output by 20% under OPEC+ deal – CEO

MOSCOW, Jul 10 (PRIME) -- Russian oil company Tatneft has reduced oil production by 20% under the OPEC+ oil output reduction deal, and expects it to fall by 10% in 2021, CEO Nail Maganov said in an interview with Rossiya 24 television channel broadcast on Friday.

“Our country took an active part in it, and we all comply with our liabilities (under the deal). In our company, the output reduction amounts to 20% right now, and it will amount to 10% in 2021. And we will gradually restore our production simultaneously with the growth of demand and with elimination of reserves that were made excessively during the period of deep contraction (of demand),” he said.

“I won’t say that the economic situation makes us happy, but it allows us to work, pay wages, and support our employees and our investment,” he said.

Demand for oil of Tatneft already outperformed the company’s capabilities in June taking into account the OPEC+ deal, he said.

The company also expects the oil price to amount to U.S. $30–40 per barrel as of the end of 2020.

“The price of $10–15 was in stress scenarios that we developed for ourselves to look how we would be able to support our stability under these conditions and how we would implement out investment projects. And we, as all other companies, assume the forecast of our Economic Development Ministry of $30–40 as of the end of the year,” Maganov said.

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