Fedun: it is better to sell one barrel of oil at $50 than two, but for $30

Fedun: it is better to sell one barrel of oil at $50 than two, but for $30

MOSCOW, January 25. LUKOIL has no plans to repeat in 2016, a record production of 100 million tonnes, which was achieved in the past year. Oil is more profitable to sell at a high price. In an interview, said Vice-President “LUKOIL” Leonid Fedun.

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“Don’t think so. In conditions of severe uncertainty be chasing the records and to increase the offer in a crowded market, at least, irrational”, – he told, answering a question about how does the company plan to repeat the record production of last year.

Fedun considers that the practice to fill the market with cheap oil wrong, as in half a year – year it would sell twice is more expensive. To do this, Russian companies have a margin of safety, they are not encumbered any debts or any kind of hard financial commitments, said Vice-President of “LUKOIL”.

“Today should give the amount of oil that will not undermine the budgets of countries and companies, and at the same time not put additional pressure on the market,” he said.

In his words, “it is better to sell one barrel of oil at $50 than two, but for $30”.

Prospects of foreign projects questionable

Foreign oil projects are not profitable for oil companies due to the current price environment, now their prospects are questionable, also said Fedun.


Oil prices over 40 years


“Yeah, no. For the simple reason that because of price conjuncture of perspectives now on the market no one understands,” said he, answering the question about the prospects of Russian companies, including LUKOIL in foreign projects.

“If in Russia we benefit from a devaluation, then abroad at $30 per barrel to withstand heavy investment commitments difficult. Therefore, most likely, the company, and not only Russian, will go out of costly projects around the world. Their task now is not to development but to survival,” said Vice-President of “LUKOIL”.

However, he stressed that LUKOIL continues to participate in several large projects. Primarily in Iraq and Uzbekistan, but, according to his confession, now it’s hard.

Read the whole interview