TASS: Lukoil says Russia Needs to Work with OPEC
MOSCOW, Jan 25 (Reuters) – Russia needs to start working with OPEC to cut oil supplies to the world market in a bid to support prices, Leonid Fedun, vice-president of Russia's No.2 oil producer Lukoil, was quoted as saying on Monday.
Russia, the world's top oil producer, has long refused to cooperate with OPEC while regularly meeting officials from the cartel. OPEC has always said it would agree cuts if other producers such as Russia joined to move.
"In my opinion, if such a political decision is taken, Russia should jointly work with OPEC to cut supply to the market ... It's better to sell one barrel of oil at $50 than two barrels at $30," Fedun told TASS news agency in an interview.
Russia's oil production hit a post-Soviet high of 10.83 million barrels per day (bpd) in December, adding to the glut on global markets as output was supported by a weaker rouble.
Lukoil's oil output exceeded 100 million tonnes (2 million bpd) last year, the company said earlier. It did not give a break down by regions, although energy ministry data showed it was pumping an average of 1.7 million bpd in Russia alone.
Fedun, a mastermind of Lukoil's expansion abroad, said the company's output was unlikely to remain as high as last year.
"The practice of filling the market with cheap oil at any cost is wrong - half a year or a year later it could be sold at twice as high," he said. Fedun did not give a figure.
He added Lukoil was preparing to cut production at its West Qurna-2 project in Iraq.
"Earlier, the Iraqi government said that they are ready to take out 300,000-500,000 bpd from the market. Our share will be proportional," Fedun told TASS.
Iraq was pumping an average of 4.2 million bpd in December, according to a Reuters survey, with production at West Qurna-2 last reported at 450,000 bpd.
(Reporting by Polina Devitt; Writing by Dmitry Solovyov and Katya Golubkova; Editing by Mark Potter)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Oil Groups Talk Federal Lease Freeze
- Lundin Contracts Odfjell Rig for Up to Nine Wells
- Oil Steady as Demand Fears and Tighter Supply Mingle
- BP Directly Supplies China Gas Customers with LNG
- China Oil Demand at Risk
- Zennor Achieves Carbon Neutrality
- Schumer Wants Biden to Bypass Congress on Climate
- Diamond Offshore Announces Restructuring Plan
- Tullow Spuds Well Offshore Suriname
- Permian Flaring Report Contrasts with RRC Stance
- Biden Set to Freeze Oil Leasing on Federal Land
- TC Energy Reacts to Keystone Pipeline Development
- Alberta Leader Urges Keystone Retaliation
- DOE Announces New Senior Leaders
- Shell Reshapes Malaysia Business
- Woman to Lead New Middle East Oil Firm
- Equinor SVP Joins Aker Solutions
- Iran Says it is Reviving Oil Output
- Oil Groups Talk Federal Lease Freeze
- Israeli Firm Claims EV Charging Breakthrough
- Executives Predict 2021-End Oil Price
- Shale Needs More to Boom Again
- Oil Discovery Made in US Gulf of Mexico
- Biden Set to Freeze Oil Leasing on Federal Land
- Canada Gov Supports Hibernia Project
- Troops Fight Off Attack Near $20B LNG Project
- Pacific Drilling Expects Ch11 Emergence by End 2020
- BLM Finalizes Alaska Activity Plan
- Qatar and Four Arab States to Fully Restore Ties
- ADNOC Creates New Directorate