Russia to cut 2017 oil output plan by up to 300,000 bpd if freeze agreed

November 24, 2016 | Commodities & Oilprice, Eastern Europe & Russia, OPEC

Moscow, Russia | – Russia could revise down its 2017 oil production plans if a global output freeze pact comes into force, Russian Energy Minister Alexander Novak said on Thursday.

“According to our plans, (Russian) oil output is going up next year. If we keep production at the current level we are making our contribution, for us that essentially means a cut of 200,000-300,000 barrels per day (in 2017)”, he told journalists.

OPEC nations are due to meet on Nov. 30 to try to finalise a pact on freezing oil prices.

Russian oil companies say they will boost output next year after reaching record levels in recent months, by continuing to commission new oilfields.

Those oil fields that have been put on stream in 2016 will continue pumping oil in 2017 and “as a matter of fact we will cut production on the brown fields,” Novak said, referring to fields that have already been producing oil for some years.

Consultations with OPEC are going positively and Russia will hold talks with a number of oil-producing non-OPEC nations, including Kazakhstan and Mexico, the minister said.

No contacts on the global oil freeze have been held with the United States and contacts with Norway show that Oslo would not be taking part in the deal, Novak said.