Russia's Lukoil Expects OPEC+ Oil Output Rollover in January

Reuters
Friday, December 17, 2021

Leonid Fedun, a vice president of Russian oil major Lukoil, said on Friday he expected OPEC+ to stick to its decision to raise oil production by 400,000 barrels per day (bpd) each month at its meeting in January.

OPEC and allies including Russia, known as OPEC+, are faced with a potential dent to demand from the fast-spreading Omicron coronavirus variant, and a decision by key oil consumers to release crude from stockpiles to try to curb fuel prices.

The group still stuck to its plans to raise combined oil production by 400,000 bpd at its meeting in early December. OPEC+ ministers are scheduled to meet next on Jan. 4.

"I don't see any deviations from the program," Fedun told reporters when asked about his expectations for the next OPEC+ meeting.

He also said Lukoil would not reach pre-pandemic oil output levels in April, when the OPEC+ deal is due to be phased out.

Earlier on Friday, Fedun said the company planned to increase its hydrocarbon production by 1.4-1.5% a year over the next 10 years.

Lukoil had said it expected output growth of 4% in 2021 without the West Qurna-2 project in Iraq.

Fedun reiterated Lukoil is aiming to achieve carbon neutrality by 2050 and planned to modernize its oil refineries in Europe in order to reach that target.

He also said an oil price of $60-$80 per barrel was comfortable for producers and consumers.

Separately, Interfax news agency quoted Lukoil's head Vagit Alekperov as saying the company would have used up its spare production capacity by April next year. 

(Reporting by Olesya Astakhova Writing by Vladimir Soldatkin Editing by Mark Potter)

Categories: Energy Industry News Activity Europe Production

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