Vice President LUKOIL Leonid Fedun believes Russia is beneficial, the new reduction of the production of 10-15 million barrels per day. Without a deal, OPEC+ Russian oil industry is expected to “carpet the closure of the wells,” he said in an interview with RBC.
“Production would have fallen much more. We would not be able to ship oil except to its own plants, and the consumption is extremely low in the Russian Federation, so we could be close to 50% of production,” said Mr. Fedun.
“This is not a response, and a realistic assessment. In this case, we would have closed (well.— “B”) at a price of $10-15 per barrel. And all companies would suffer huge losses, they would have negative cash flow,” he said.
on Friday 23 countries, including Russia and Saudi Arabia have agreed on new production cuts under OPEC deals+ — 10 million barrels per day since may 1.
for Another 5 million barrels will naturally reduce the production of the United States, Canada, Norway and other countries that are not formally participants of this transaction.
the Purpose of the agreement was the elimination of the consequences of the decline in demand for oil due coronavirus that almost led to the filling of all the world’s stores of oil.
According to the head of Ministry of energy Alexander Novak, the excess supply is 10-15 million barrels per day, while in the second quarter may increase by half, due what is the effectiveness of the current transaction is OPEC+ without the participation of other countries left some questions.
