Global oil output cuts could be extended beyond 2018: Rosneft

Business Tuesday 19/December/2017 13:04 PM
By: Times News Service
Global oil output cuts could be extended beyond 2018: Rosneft

Sochi, (Russia): A global deal to cut oil production could be extended beyond 2018, Pavel Fedorov, first vice-president of Russia's largest oil producer Rosneft said on Monday, presenting the company's strategy through to 2022.
The Organisation of the Petroleum Exporting Countries (Opec) and other large oil producers led by Russia agreed last month to extend the deal to curb output until the end of 2018 with a possibility of reviewing it in June.
"On the whole ... this Opec agreement obviously will affect our short-term targets, all the more so I don't rule out it could be extended," Fedorov said.
Kremlin-controlled Rosneft accounts for 40 per cent of Russia's total oil production.
He said production of liquids — which usually means crude oil and gas condensate — is seen reaching 250 million tonnes by 2022 from slightly below that level in 2019.
Rosneft, in which BP owns a 19.75 per cent stake, has been actively amassing assets at home and abroad.
Last year it bought Russian oil producer Bashneft for 330 billion roubles ($5.6 billion), while earlier this year the company jointly with partners closed their $12.9 billion purchase of Indian refiner Essar Oil.
A company official said on Monday that Rosneft will focus on value creation at its existing assets.
Igor Sechin, Chief Executive Officer and close ally of Russian President Vladimir Putin, said on Monday the company had started exploration drilling at a Black Sea deposit.
Rosneft has plans to jointly develop the Val Shatskogo (Shatsky Ridge) oilfield with Italy's Eni.
Fedorov also said the company's total investments were seen at 950 billion roubles ($16.2 billion) in 2018 and rising further to over 1 trillion roubles in 2019.