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Russian oil producers to cut output under new OPEC+ restrictions proportionally — Lukoil

The official called the decision to exclude gas condensate from OPEC+ gas quotas "absolutely correct" as, for example, Saudi Arabia, like the other countries of the cartel, does not take it into account in its production

MOSCOW, December 17. /TASS/. Russian oil companies received new quotas from the Ministry of Energy to reduce production under the new OPEC+ restrictions, and will continue to scale down production proportionally, Vice President for Strategic Development of Lukoil Leonid Fedun said as part of the presentation of a long-term forecast for the oil market.

"We received it," he said, answering a question about whether the oil industry obtained new quotas following the OPEC+ decision to increase production cuts, in which Russia’s quota grew from 228,000 to 300,000 barrels per day against the level of October 2018. "The new reductions are small — just calculate 80,000, which must be divided between all companies proportionally," he noted. Fedun also added that Lukoil did not revise its production plan for 2020, as quotas rose by a small amount.

He also called the decision to exclude gas condensate from OPEC+ gas quotas "absolutely correct" as, for example, Saudi Arabia, like the other countries of the cartel, does not take it into account in its production.

OPEC+ states (24 oil exporting countries, including Russia) have been coordinating production since 2017. At a meeting in July, they extended agreements to reduce oil output by 1.2 mln barrels per day to the level of October 2018, including 812,000 barrels per day for OPEC countries. Now the agreement is in effect until the end of March 2020. At a meeting in early December, it was decided to increase production cuts until March to 0.5 mln barrels per day — up to 1.7 mln barrels per day. Russia’s quota has been expanded from 228,000 to 300,000 bpd from the level of October 2018.