Russia's Gazprom Neft readies for oil output hike

Russia's Gazprom Neft readies for oil output hike

Gazprom Neft, the fastest-growing Russian oil major in terms of output, is ready to hike crude production if the global deal on output cuts is eased, company head Alexander Dyukov said.

"It is obvious now that the (production) quotas should be revised, the quotas should be increased, this will be beneficial both for producers and consumers," he stressed.

He added that the company would be able to hike its oil production by 5000 tonnes per day (36,650 barrels per day) if the restrictions are scrapped. "We believe that the time has come that it makes sense to keep the deal in place but be more flexible on quotas," Reuters cited Dyukov as saying.

He also said that if the deal is kept in place, Gazprom Neft’s oil production will be stable, at 62.3 million tonnes (1.25 million bpd) this year.

The Organization of the Petroleum Exporting Countries (OPEC) and other leading oil producers including Russia have agreed to cut their combined output by 1.8 million barrels per day in order to smooth out global oil stockpiles and support oil prices. The OPEC and non-OPEC ministers will meet in Vienna on June 22-23 to discuss the future of the deal, which is valid until the end of the year. Russia and OPEC leader Saudi Arabia have signaled there could be a need to gradually boost production to prevent any supply shortages.

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