Rosneft reduced oil production by 25,000 barrels a day, Igor Sechin, President of Rosneft, said yesterday in Vienna, where the Oil Ministers of Russia, Mexico, Saudi Arabia and Venezuela have had talks on the eve of OPEC summit.
Sechin said that Rosneft is forced to reduce oil production, because of the situation at the market. He added that the current level of oil price is not crucial for the company.
Rosneft President added that reduction of oil price below $60.00 per barrel will not lead to reduction of oil production in Russia, reported Bloomberg.
He said that Russian oil companies will react to the world demand. Sechin added that representatives of Russia, Venezuela, Saudi Arabia and Mexico will be able to meet every quarter to monitor oil prices.
Sechin admitted that there is excess of oil at the world market, but it is not crucial. The excess of supply will not reduce oil price in the long term, he supposed.
Rosneft Vice President for Public Relations Mikhail Leontyev told RBC that Sechin will make decision on the possibility of further reduction of oil production by the state company, considering ration of supply and demand at the free market and efficiency of investments into production.
“If the price continues reducing, we will have a possibility to postpone the term of implementation of the most expensive oil production projects. This could lead to further reduction of oil production by Rosneft,” Leontyev said.
During 10 months, 2014 Rosneft increase production by 0.7% from 159.7 million tons (January to October 2013) to 159.1 million tons. In October 2014 the production decreased insignificantly. The reduction constituted 0.1% from 16.38 million tons in 2013 to 16,251,000 tons in 2014.
CIB Sberbank analyst Valerii Nesterov and Mikhail Krutikhin, partner of RusEnergy consulting company, do not believe that Sechin’s statement about reduction of oil production by Rosneft will affect the world oil prices.
