• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 20 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 days Does Toyota Know Something That We Don’t?
  • 5 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days China is using Chinese Names of Cities on their Border with Russia.
  • 8 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 8 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 8 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 7 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 8 days Putin and Xi Bet on the Global South
  • 8 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 9 days United States LNG Exports Reach Third Place
  • 9 days Biden's $2 trillion Plan for Insfrastructure and Jobs
UK Trade Authority Probes Steel Import Quotas

UK Trade Authority Probes Steel Import Quotas

The UK's Trade Remedies Authority…

ADNOC CEO: Global Energy Demand Growth Is Unsustainable

ADNOC CEO: Global Energy Demand Growth Is Unsustainable

According to ADNOC CEO Al-Jaber,…

Russia Will Not Compensate Its Oil Firms For Production Cuts

Russian oil companies will not receive compensation for the production cuts that Russia has pledged to implement as part of a deal with OPEC producers to reduce global oil supply, Russia’s TASS news agency reported on Wednesday, quoting Kremlin spokesman Dmitry Peskov.

“The issue of any compensation has not been raised,” Peskov commented on the meeting which Energy Minister Alexander Novak held with major domestic oil producers earlier today.

“On the whole the oil price hike as a result of assumed measures, a $5 increase brings certain extra yields both to the country’s budget and to oil companies themselves,” TASS quoted Peskov as saying.

In addition, Putin has “personally agreed the issue of production cap with all leading oil companies,” Peskov noted.

OPEC said last week it had reached a deal to cut the cartel’s production to 32.5 million bpd, by around 1.2 million bpd from October levels, but made it contingent on the willingness of non-OPEC nations – including Russia – to shed another 600,000 bpd from total production.

A day after the deal was reached, Novak said that all Russian oil companies are on board with the 300,000-bpd cut agreed by Moscow. The Russian-language website of the Russian energy ministry features a quote by Novak that says that Russia would gradually reduce output in the first half of 2017 by up to 300,000 bpd.

Related: Venezuela’s Maduro Praises The OPEC Deal, But How Good Is It Really?

Meanwhile, Venezuela’s Oil Minister Eulogio del Pino told TASS news agency on Wednesday that OPEC and Russia have agreed a mutually acceptable deal on how to cap production for six months. According to Del Pino, the oil market will stabilize in 6 to 9 months after the production cap accord that is expected to be signed on December 10 in Vienna.

After today’s meeting between Novak and large oil companies, Lukoil’s CEO Vagit Alekperov said that the ministry had not set recommendations on output quotas to Russian oil producers, according to Reuters. The ministry would comment on the meeting with oil producers later, according to Novatek CEO Leonid Mikhelson.

ADVERTISEMENT

Last week, Lukoil’s vice president Leonid Fedun said in an interview with a Russian TV that Lukoil was expecting the government to issue a decree on production cuts with tasks for each company and probably offer some compensatory mechanisms for lower output. Fedun added that Lukoil hoped there would be some sort of compensation.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News