• 4 mintues Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Forecasts for oil stocks.
  • 9 minutes Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 13 minutes European gas market to 2040 according to Platts Analitics
  • 3 hours Simple question: What is the expected impact in electricity Demand when EV deployment exceeds 10%
  • 8 hours America's pandemic dead deserve accountability after Birx disclosure
  • 9 hours Today Biden calls for Summit with Putin. Will Joe apologize to Putin for calling him a "Killer" ?
  • 19 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 hours Putin blocks Ukraine access to Black Sea after Joe blinks
  • 10 hours Biden about to face first real test. Russia building up military on Ukraine border.
  • 4 days Joe Biden's Presidency
  • 10 hours Fukushima
  • 17 hours CO2 Mitigation on Earth and Magnesium Civilization on Mars – Just Add Water
  • 3 days New Chinese Coal Plants Equal All those in U.S.A

Russia’s Top Oil Company Cuts Investment Due To OPEC+ Deal

Russia’s largest oil producer, Rosneft, will slash its investments for 2020 by 21 percent from earlier plans, due to the dramatic situation on the oil market and the new OPEC+ deal in force since May 1, Rosneft’s chief executive Igor Sechin told Russian President Vladimir Putin on Tuesday.

Considering the dramatic state of the global oil market and the decision to cut oil production, Rosneft will have to optimize its capital expenditures, Sechin told Putin, the Kremlin said today.  

Rosneft will try to keep its investment program for this year at around US$10.2 billion (750 billion Russian rubles), down from US$12.9 billion (950 billion rubles) in capex planned earlier, Sechin said.

Rosneft’s boss also asked Putin to look into ways to make obtaining credit easier, to help producers, contractors, and suppliers.

Sechin also asked if the government could defer oil exploration-related taxes to a future period, in order to help oil companies to go through the current crisis, and recalibrate oil transportation tariffs to the current price of oil. Currently, transportation costs account for 32 percent of Rosneft’s final cost of oil, Sechin said.

Oil executives in Russia, including Sechin, have often criticized the OPEC+ pact, which began its efforts to fix the market and prop up prices in January 2017. Russian firms have argued that the OPEC+ cuts only serve to prop up U.S. shale production with higher oil prices, giving America more share on the global market at the expense of Russia and its OPEC allies in the OPEC+ deal. Many analysts saw Moscow’s refusal in early March to back a collective 1.5-million-bpd cut from all OPEC+ members as the end of the Russian patience for propping up U.S. shale. 

As part of the latest OPEC+ pact, Russia will have to cut its oil production from around 11 million bpd to 8.5 million bpd in May and June—and many analyst expect Russia would not be able to fully comply with its share of the cuts, again. 

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News