Novak will discuss with the companies the reduction in oil production to meet OPEC

Minister of energy of Russia Alexander Novak on December 7 to meet with representatives of Russian oil companies, reports Reuters, citing two sources in the energy sector. One of the interlocutors of the Agency said that the meeting will be discussed after Russia’s accession to global agreement on limiting oil production.

A source in the energy Ministry and a source close to one of the participants of the scheduled meeting, confirmed the meeting on 7 December. In turn, a source told TASS that a meeting of the Minister with oil industry workers was planned before, but it was repeatedly postponed.

The meeting of representatives of OPEC and outside the organization oil-producing countries will take place on 10 December in Vienna. Russia will be represented by Alexander Novak.

Earlier the Minister said that Russia is ready to accede to the agreement on stabilization of the situation on the oil markets and plans to gradually reduce production in the first half of 2017 “in the volume of 300 thousand barrels per day”.

The exact schedule of the decline in oil production was expected to prepare before the meeting of OPEC, scheduled for December 9-10. Later Vice-President and co-owner of oil company LUKOIL Leonid Fedun has expressed the hope that in the adopted by the government of Russia “governing document” will be determined not only by the tasks for each major oil producer, but also offered some compensation of the cost of operation for the freezing of the production part of the wells.

In an interview Fedun also noted that the reduction of oil production in Russia will lead primarily to a reduction in exports.

“Of course, in the first place it will lead to a reduction in exports, because domestic consumption of oil in Russia is about 100 mln tons a year, and we produce more than 550 million tons and the rest is exported either in the form of oil or petroleum products. Therefore, there will be a reduction of exports as these 300 thousand Barr. a day,” explained Vice-President of LUKOIL.

In late November, OPEC members agreed to reduce oil production by 1.2 million barrels. a day, to 32.5 million barrels./day. From countries that are not included in the cartel, the organization expects reduction in total 600 thousand Barr./day.