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Russia’s position on OPEC+ deal to be forged by July 1

OPEC+ countries have been discussing the oil production policy for the second half of the year since April

MOSCOW, June 27. /TASS/. Russia’s Energy Ministry is still holding consultations with local oil producers regarding the position on further implementation of the OPEC+ deal, Minister Alexander Novak told reporters on Thursday, adding that Moscow’s position would be forged by July 1.

"Consultations are still underway. I think we will be able (to forge a position) by the (meeting of) JMMC (Joint Ministerial Monitoring Committee) on July 1," he said when asked about the consensus among Russian companies.

Novak noted that "decisions" made on the sidelines of the G20 summit are expected, adding that they would be critical for Russia’s position. The minister also confirmed the plan to hold the talks with his Saudi counterpart, Minister of Energy, Industry and Mineral Resources Khalid al-Falih, there. He emphasized that he hopes "a single, consolidated decision" will be reached at the meeting in Vienna.

OPEC+ countries have been discussing the oil production policy for the second half of the year since April. The deal on reduction of oil production by 1.2 mln barrels daily, with Russia’s share of 228,000 barrels a day, was concluded in December 2018 and expires on June 30.

Russian companies do not have a common position on participation in the OPEC+ deal, Chief Executive Officer of Russia’s oil major Lukoil Vagit Alekperov said earlier. He also spoke in support of extending the agreement. Meanwhile, Chief Executive Officer of Gazprom Neft Alexander Dyukov has said that he is in favor of adjusting the OPEC+ quota for the second half of 2019, which could enable countries to slightly boost crude production. He considers it early to speak confidently about the necessity of such a step and the parameters of the revised quota, as the market has not yet calmed down. Russia’s biggest oil producer Rosneft is a virulent critic of the OPEC+ agreement. Chief Executive Officer Igor Sechin said earlier that the company was addressing the issue of compensation for potential losses in case of further extension of the OPEC+ deal and the need of delaying the launch of the company’s new projects from the government.

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