Russia’s Gazprom Neft sees oil output edging up in 2017

TOKYO, Dec 16 (PRIME) -- Russian oil company Gazprom Neft expects its production to edge up in 2017 even taking into account the Vienna production cut agreement between OPEC and non-OPEC states, CEO Alexander Dyukov told reporters on Friday.

OPEC and 11 non-OPEC countries, including Russia, agreed on December 11 to cut combined oil production by 1.8 million barrels a day in January–July 2017 in order to balance supply and demand. OPEC will reduce output by 1.2 million barrels daily, while Russia is to decrease the production by 300,000 barrels. On Wednesday, Energy Minister Alexander Novak said that local oil producers will reduce the output proportionately to the volume and voluntary.

“We expect that production in 2017 will on average be slightly higher (than in 2016) in spite of the planned six-month decrease of the production,” he said.

“We grew in 2016…This is why an average daily oil output will be higher than in 2016 even despite the proportionate reduction that we are to show,” he said, adding that the company may decrease the output by a smaller amount.

“It is important that Russia maintains the level (of 300,000 barrels) it signed,” but Gazprom Neft hopes to agree with other oil producers and use their quotas to make its own cut smaller, he said.

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