Rosneft Says Projects Economically Viable Even If Oil Price Slips Further

Reuters

MOSCOW, Oct 17 (Reuters) – Russia's Rosneft, the world's biggest listed oil producer by output, said on Friday the fall in oil prices was not critical for the company and it saw "no reason for concern".

"The company's projects remain economically viable at prices much lower than current levels," Rosneft said in emailed comments.

Brent has lost more than 20 percent of its value since June and was dragged down earlier in the week by signals from key OPEC members that the group was unlikely to intervene. It is now trading at $85.84 per barrel.

Rosneft's capital expenditure stood at around 700 billion roubles ($17 billion) for this year under an oil price of below $100 per barrel.

Rosneft, which accounts for around 40 percent of Russia's total oil output, was earlier put on the Western sanctions list over Moscow's role in Ukraine crisis.

The measures ban Rosneft from raising long-term Western financing and prevent Western companies from cooperating with the company in Arctic, shale oil or deep water exploration and production.

Last month, U.S. oil company ExxonMobil said it had to wind down cooperation with Rosneft in the Arctic after successfully drilling a first exploration well.

(1 US dollar = 41.0560 Russian rouble)

(Reporting by Katya Golubkova, editing by Elizabeth Piper)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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