Russia’s RussNeft to cut Jan–Jun oil output by 300,000 tns

MOSCOW, Jan 25 (PRIME) -- Russian oil company RussNeft will cut production by 300,000 tonnes in January–June under an agreement between OPEC and non-OPEC countries, Mikhail Gutseriyev, the core owner and board chairman, told PRIME on Wednesday.

“Our share (in the agreement) is 300,000 tonnes,” he said, adding that the company has already started reduction of production.

RussNeft based its 2017–2019 budget on an average annual oil price of U.S. $50 per barrel and the ruble rate of 60 per U.S. dollar, he said.

The combined figure of earnings before interest, taxes, depreciation and amortization (EBITDA) of RussNeft and Neftisa, also owned by Gutseriyev, is expected at $1 billion in 2017, he said.

In 2014, Gutseriyev said he planned to merge the two companies and estimated value of the merged company at about $18 billion. But in November 2016, RussNeft President Yevgeny Tolochek said the company does not plan to acquire Neftisa in the next two to three years.

End