Putin: it has been agreed to maintain the level of oil production in 2016 at the level of January

Putin: it has been agreed to maintain the level of oil production in 2016 at the level of January


MOSCOW, March 2. Agreed freeze on January’s level of oil production in 2016 overall achieved. This was stated by the President of the Russian Federation Vladimir Putin at a meeting with members of the government of the Russian Federation.

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“We met with the management of our oil companies. Generally agreed that we will maintain the level of oil production in 2016 at the level of January of the current year”, – said the head of state, asking the head of the Ministry Sergey Donskoy, to report on the situation in the sphere of geological prospecting in the Russian Federation.

According to don, the growth of investment in the hydrocarbon exploration in Russia could reach 30% after the extension of the application of the system of such works in this area.

“In our view, this will be offset by reduced investment in exploration, associated with the macroeconomic situation and, according to experts, the growth of investment in the hydrocarbon exploration could increase by 30 percent,” the Minister said.

According to him, today in connection with current market conditions decreased in exploration activities by oil companies around the world, it was 22%. “In these conditions, in accordance with Your instructions, we plan to support the industry, distribute of hydrocarbon areas of application of the so-called principle,” said the don to the President of the Russian Federation, explaining that in such cases, the simplified procedure of licensing of plots which have not yet opened the oil and gas reserves.

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Don: investments in exploration in 2015 will be reduced by 10% for all sources

A meeting of oil companies with the President

As previously reported, the Russian President Vladimir Putin on Tuesday held a meeting with heads of Russian oil companies, where they agreed with the idea of stabilization of oil production at the level of January 2016, and asked about the stability of taxation. The meeting was attended by heads of “Rosneft”, “LUKOIL”, “Bashneft” and “Surgutneftegaz”, “Tatneft”, “Gazprom oil” and “Independent oil companies”.

At the beginning of the meeting, the President informed the heads of oil companies, energy Minister Alexander Novak has already practically agreed on stabilization of oil extraction in the international arena. The President stressed the need to preserve the ongoing development of the oil industry. “Our goal is to preserve the stability of the oil industry, to ensure its ongoing development and implementation of long term projects,” he said.

Negotiations on “frozen”

Currently negotiations are underway about the possibility of freezing of oil production by leading countries-exporters of this raw material.

So, on February 16 in the Qatari capital Doha, Ministers of oil of Saudi Arabia, Qatar, Venezuela, included in OPEC and Russian energy Minister Alexander Novak held talks on improving the price situation on the oil market. The parties expressed their willingness to save, on average, in 2016 oil production at the level of January of the current year, if other countries-oil producers will join this initiative.

As noted by the Minister of energy Alexander Novak, the final decision on stabilization of oil production will be made in March.

“In what format it will be done, yet to be discussed with colleagues. The format is not specified. The most important issue is monitoring the implementation of those agreements that can be achieved,” added Novak.