Advertisment Moscow May Not Comply with Further OPEC Cut | IRAN Energy News Skip to main content
IRAN Energy News Agency
Oil, Gas, Petrochemical and Energy Field Specialized Channel
Oil, Gas, Petrochemical and Energy Field Specialized Channel
Oil, Gas, Petrochemical and Energy Field Specialized Channel

Moscow May Not Comply with Further OPEC Cut

OPEC, Russia and several other major producers have cut their combined output by about 1.8 million barrels per day since January.

Oil output from Russia's Sakhalin-1 project is set to rise by about a quarter to 250,000-260,000 barrels per day (bpd) from January, sources with knowledge of the plan said, signaling Moscow may find it hard to comply with an extended Organization of the Petroleum Exporting Countries (OPEC) output cut.

Russia and OPEC members will meet in Vienna on Thursday to discuss an extension of the pact to curb output, possibly to the end of 2018.

The Sakhalin-1 project, operated by ExxonMobil off the coast of Sakhalin island in Russia's Far East, currently produces about 200,000 bpd.

"From January, total oil production from Sakhalin-1 and a small stream from Rosneft's separate block will be about 250,000 bpd," said one of the sources familiar with the matter.

A second source said production will increase to 260,000 bpd in the March quarter from about 190,000 bpd in 2017. A third source said output will rise to more than 250,000 bpd.

"Exxon is seeking permission to raise output under its development plan and is hopeful of getting it later in the year," said the first source.

In the meantime, the joint venture has opted to "front load" production and may cut it later if permission is not granted to keep the annual average intact, this source said.

India's ONGC Videsh recently for the first time issued three tenders for the sale of Sokol crude from Sakhalin-1 in a month.

OPEC, Russia and several other major producers have cut their combined output by about 1.8 million barrels per day since January to reduce bloated inventories and boost oil prices.

Moscow has said it was ready to support extending a deal. But its economy minister has also said the country's economy has been hurt by the deal as it has dampened investment.

Russia's oil-dependent economy grew an annual 1.8 percent in the September quarter, slowing from 2.5 percent in the second quarter.

US producers, which scaled back output with the price slump after mid-2014, have ramped up production as oil prices climbed.

 

Join us on Telegram Channel."Energy Today"

Add new comment

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Fill in the blank.
Parvin Faghfouri Azar
Energy Today
w
+98.21.26413997
Unit 32, No. 26, North Naft Street
Tehran,TH,1918793572
Iran

Moscow May Not Comply with Further OPEC Cut

OPEC, Russia and several other major producers have cut their combined output by about 1.8 million barrels per day since January.
Parvin Faghfouri Azar
Oil output from Russia's Sakhalin-1 project is set to rise by about a quarter to 250,000-260,000 barrels per day (bpd) from January, sources with knowledge of the plan said, signaling Moscow may find it hard to comply with an extended Organization of the Petroleum Exporting Countries (OPEC) output cut. Russia and OPEC members will meet in Vienna on Thursday to discuss an extension of the pact to curb output, possibly to the end of 2018. The Sakhalin-1 project, operated by ExxonMobil off the coast of Sakhalin island in Russia's Far East, currently produces about 200,000 bpd. "From January, total oil production from Sakhalin-1 and a small stream from Rosneft's separate block will be about 250,000 bpd," said one of the sources familiar with the matter. A second source said production will increase to 260,000 bpd in the March quarter from about 190,000 bpd in 2017. A third source said output will rise to more than 250,000 bpd. "Exxon is seeking permission to raise output under its development plan and is hopeful of getting it later in the year," said the first source. In the meantime, the joint venture has opted to "front load" production and may cut it later if permission is not granted to keep the annual average intact, this source said. India's ONGC Videsh recently for the first time issued three tenders for the sale of Sokol crude from Sakhalin-1 in a month. OPEC, Russia and several other major producers have cut their combined output by about 1.8 million barrels per day since January to reduce bloated inventories and boost oil prices. Moscow has said it was ready to support extending a deal. But its economy minister has also said the country's economy has been hurt by the deal as it has dampened investment. Russia's oil-dependent economy grew an annual 1.8 percent in the September quarter, slowing from 2.5 percent in the second quarter. US producers, which scaled back output with the price slump after mid-2014, have ramped up production as oil prices climbed. 
49