Novak spoke about the stages of reduction of oil production in Russia – RBC

Russian energy Minister Alexander Novak

Photo: Maxim Blinov/RIA Novosti

Russian oil companies in January will cut oil production by 50 thousand barrels. a day in March — already 200 thousand, and by may, the reduction will be about 300 thousand Barr., said Russian energy Minister Alexander Novak

On the planned level of reduction of oil production by 300 thousand barrels per day — the Russian company will be released in April — may 2017, said Novak.

“the Ultimate goal is 10,947 thousand barrels per day according to our classification,” said he, answering the question of to what level Russia will reduce oil production (quoted by TASS). The total reduction of oil production by OPEC countries and countries outside the cartel will reach 1,7-1,8 million Barr. the day.

the Minister called the price of oil at $ 55-60 per barrel absolutely comfortable. “In my opinion, is the price, which today is at the level of 55 dollars per barrel or maybe $ 60 per barrel, this price is absolutely comfortable for all oil producers. It allows to balance the interests of manufacturers and consumers”, — he told on air of TV channel “Russia 24″ (quoted by RIA news).

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Russian companies will cut oil production only voluntarily, said Novak.

“Given that we are talking about public or private companies, of course, the reduction mechanism can only be voluntary. We are in contact with our mining companies through 2016, discussed the possibility of coordination and joint action in the oil market with a view to its stabilization. We already had met several times and just last week was another meeting where our companies confirmed their readiness to participate in the agreements reached today,” said the Minister.

“Any punishment not provided, the voluntary nature of all the agreements are. And adjustment plans of the company is also primarily the company’s decision,” he said, Novak RIA Novosti.

According to him, in April — may 2017, Russia will cut production by 300 thousand barrels per day. The total reduction of oil production by OPEC countries and countries outside the cartel will reach 1,7-1,8 million Barr. the day.

Earlier, Deputy Prime Minister Arkady Dvorkovich said that the Russian government will not enact legislation fixing the obligation of oil companies to reduce production, because they do not have the appropriate authority. “In government there is no such authority. We have no international Treaty which would give such opportunities,” — said Dvorkovich.

on 7 December the press Secretary of the President of Russia Dmitry Peskov said that the decision about reduction of oil production in Russia was accepted personally by Vladimir Putin, “on the basis of consensus with the heads of companies.” This Peskov said that the issue of compensation to companies for the decline in production was not discussed. He noted that “raising the price of oil for every $ 5 brings additional revenues to the state budget and for the companies themselves”.

a few days before that, Vice President and co-owner of oil company LUKOIL Leonid Fedun said that the company expects “will be offered some compensation” as “the freezing of oil production requires a certain cost”.

on 30 November, OPEC agreed to cut total oil production in the cartel by 1.2 million bbl./day, to 32.5 million barrels./day. The decision on the reduction was joined by Russia, which has said it is ready to cut production by 300 thousand barrels. in the first half of 2017. After the transaction, Reuters reported that a key role in the success of the negotiations belonged to Putin, who brokered between the governments of Iran and Saudi Arabia, the most influential members of OPEC.

on Saturday, December 10, in Vienna meeting of OPEC member countries and countries outside the cartel. The latter agreed after OPEC cut its prey. This was the first such agreement for the last 15 years.