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Venezuela’s oil minister says Iraq should be part of oil production freeze deal

October 25, 2016, 18:52 UTC+3

The minister believes agreement on restricting oil production will be signed on November 30

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© AP Photo/Hadi Mizban

MOSCOW, October 25. /TASS/. Iraq should be part of a production freeze agreement but a quota for the country is open for discussion, Venezuela's Oil Minister Eulogio Del Pino said on Tuesday.

"Iraq will be part of [OPEC production freeze] agreement. However, they have a different situation [unlike in Iran, Libya and Nigeria]. They increased production. OPEC Secretary-General Mohammed Barkindo will meet the Iraqi minister today. We are open for discussion," Del Pino said.

OPEC member-states managed to agree oil production limit of 32.5-33 mln barrels per day at the informal meeting in Algeria in late September. The first meeting of the OPEC special committee for implementation of arrangements to limit oil production will take place on October 28-29 in Vienna. 

"We have invited Russia, Azerbaijan, Kazakhstan, Oman, Egypt, Bahrain, Colombia, Mexico, Trinidad and Tobago, Bolivia, Norway and Canada," the minister said.

Agreement to restrict oil production

Eulogio del Pino believes that OPEC and countries outside of the organization will sign an agreement to restricting oil production on November 30.

"Yes, it will be an agreement. Our goal for November 30 is to reach an agreement between OPEC and non-OPEC countries," he said.

Venezuela has proposed to the oil producing counties which are not members of OPEC to jointly cut production by 400-500,000 barrels a day, which is half of the volume OPEC can cut.

"We have proposed the countries, which are not members of OPEC to remove 400-500,000 barrels (a day - TAS) from the market. This is proportional to what OPEC may remove from the market," the minister said.

Earlier Iran’s Minister of Petroleum Bijan Namdar-Zanganeh said that OPEC would establish a coordinating committee, which will submit the final proposal on crude production cap in November. Also, individual quotas will be defined for countries.

Russia’s Energy Minister Alexander Novak said that Russia would voice its proposals on restriction of oil production after OPEC makes its final decision.

Venezuela, Rosneft to discuss oil supplies to India 

The minister went on to say that Venezuela is discussing with Russian oil major Rosneft crude supplies to Essar Oil Refinery in India, where the Russian company will acquire 49% after the deal completion.

"We proposed creating the whole chain to Rosneft - from production within the framework of the joint venture of PDVSA and Rosneft to shipment and deliveries of oil to the refinery in India acquired by Rosneft. This is what we discussed with Mr. Sechin [Chief Executive of Rosneft - TASS]," Del Pino said.

Venezuela was supplying 300-400 thousand barrels of oil daily to Essar Refinery during the last two years, the minister said.

It was reported earlier Rosneft will buy 49% in Essar Oil Limited. Procedures required to complete the deal, including approvals by antimonopoly authorities, are expected to be completed by the end of the year.

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