Rosneft announced plans to reduce oil production

As reported by Reuters with reference to Minister of natural resources and ecology Sergey Donskoy, Rosneft said his Department plans to reduce oil production.

Rosneft plans to reduce overall consolidated. As they announced,” said the don journalists.

The Minister said that with the reduction in the production of some Russian companies 10% the Ministry is not planning to make a complaint to him about the noncompliance with the terms of mining licences.

The official representative “Rosneft” has refused comments.

A source in the company said that this year is expected to decrease by less than 1%.

According to the Ministry of energy, mining Rosneft in 2015 decreased by approximately 1%, although the industry was an increase of 1.4%, to 534 million tons In January 2016, the production of state-owned companies compared with the same period last year fell by 1% to 15,98 million t in February production of “Rosneft” amounted to 14,96 million tonnes.

Rosneft expects natural decline of domestic production this year, Reuters reported in early March, citing sources in the industry.

In early March the head of “Rosneft” Igor Sechin at a meeting of oil industry workers Vladimir Putin has proposed not only to freeze production at the January level, but to reduce it. Rosneft offers to reduce production, because it expects natural decline of its own production this year”, — said the source Reuters in the industry.

Putin held a meeting with oil companies after the freezing of oil production was discussed at the OPEC level. The heads of the oil companies supported the preliminary agreement with OPEC by agreeing to freeze oil production at the level of January 2016.

It is planned that this agreement will be fixed at the meeting of OPEC countries with other major producers, including Russia, 17th April in Doha. It should take part in 15-16 countries, said last week OPEC Secretary General Abdalla Salem El-Badri.

Earlier, the interlocutors told me that the majority of Russian companies favour not to cut production is in danger of losing market share and the previously invested funds.