Russia’s Tatneft may revise 2017 production plans over OPEC deal

MOSCOW, Dec 12 (PRIME) -- Russian oil company Tatneft may revise its 29.35 million tonne plan for 2017 due to a reduction agreement signed by OPEC and non-OPEC states, as seen by PRIME in the company’s materials on Monday.

“The production plan for 2017 was formed in late November 2016. Adjustment of the plan is possible, due to the international agreement of the Russian Federation and OPEC among other things, but some key financial goals will be kept,” Tatneft’s materials read.

The company also said in a presentation for analysts and investors that it preliminary plans to cut investment by 6% on the year to 100.3 billion rubles in 2017.

On December 10, non-OPEC countries coordinated an output reduction by 558,000 barrels, which includes Russia that agreed to cut production by 300,000 barrels. The agreement will be in force from January 2017 until the end of June with a possibility of prolongation.

Tatneft said that investment in geological exploration may be decreased to 2 billion rubles in 2017 from 5.9 billion rubles in 2016, in production of super-viscous oil to 14.6 billion rubles from 23.5 billion rubles, into the Taneco refinery to 34.3 billion rubles from 34.8 billion rubles. But investments in production of hydrocarbons in the republic of Tatarstan may be raised to 31.8 billion rubles from 31.7 billion rubles, and other spending may grow to 17.6 billion rubles from 10.8 billion rubles.

(63.3028 rubles – U.S. $1)

End