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Gazprom Neft ready to reduce or boost crude production as part of OPEC+ agreement

The plans to boost production were announced earlier, First Deputy CEO Vadim Yakovlev said

ABU DHABI, November 13. /TASS/. Russia’s oil producer Gazprom Neft is ready for various scenarios of cooperation within the OPEC+ agreement, First Deputy CEO Vadim Yakovlev said on Tuesday, adding that the company can both reduce or raise its crude production.

"We are in constant dialogue with the government and we have shared our plans on boosting production. Now that the decision has already been announced to the industrial community we are ready to move in both directions," he said when asked whether the company would reduce output if such an instruction comes from upstairs.

Yakovlev said earlier that the market is currently starting to play by new rules, which is why companies have to learn to be receptive to changes and able to quickly adjust the production level in both directions.

First Deputy CEO considers the OPEC+ deal to be a constant mechanism, he said on Tuesday. "Only a couple of months ago we started boosting production, whereas now we are discussing a new turn, which demonstrates how emotional the market is," Yakovlev explained.

At the end of 2016, OPEC and 11 independent oil-exporting countries, including Russia, entered into an agreement to reduce oil production. According to the agreement, during the first half of 2017, the participants had to withdraw 1.8 mln barrels per day from the oil market against the level of October 2016 for reducing global oil reserves to five-year average levels.

In July 2018, OPEC+ countries decided to return to the 100% compliance level of the agreement from 150%, which virtually means the necessity to boost output by 1 mln barrels per day. OPEC+ participants reported 111% compliance for September 2018. In October, the compliance level was 104%.

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