UPDATE: Lukoil may restore oil output to January level quickly

(Adds paragraphs 4, 5)

SOCHI, Feb 27 (PRIME) -- Russian oil major Lukoil may restore oil production to the January level within three or four months after the cut agreement expires, and it will not reduce oil product output in 2017, CEO Vagit Alekperov told reporters at an investment forum in Sochi on Monday.

OPEC states agreed to reduce their oil production by 1.2 million barrels daily to 32.5 million barrels at a meeting in November. Russia joined the agreement in December with a promise to cut output by 300,000 barrels daily. The agreement was concluded for six months with potential prolongation.

CEO also said Lukoil’s obligations are comparatively low, and it does not intend to raise them in 2017. The company is not going to sell any assets this year and plans large purchases for late 2017 or early 2018.

Alekperov said that Lukoil has retuned its U.S. $6 billion investment in the West Qurna oil field, where it holds a 75% stake, and discovered 3 billion barrels of geological reserves at new Block 10 deposit developed in cooperation with Japanese Inpex Corporation.

In Iran, Lukoil bought oil, gas condensate and oil products, and sold oil products on a regular basis via its Litasco unit after the sanctions were lifted a year ago.

End