Russian producers, ministry discuss six-month oil output cut extension

MOSCOW / Reuters

Russia’s oil producers and energy ministry discussed a six-month extension to global oil output cuts, TASS news agency repor-ted, citing unnamed meeting
participants, shorter than a
9-month extension floated by Russian President Vladimir Putin.
Energy Minister Alexander Novak and domestic oil producers held a meeting last week to discuss the deal, which is scheduled to expire on March 31, 2018. “The extension by half a year was discussed. Everybody has agreed except for Gazprom Neft, as the company expects to launch new projects in 2018,” TASS quoted one of the sources, who took part in the meeting.
The firm denied the report, saying “the Energy Ministry and the companies, including Gazpronm Neft, continue discussions on the variants of the development of the deal OPEC+.” “A consolidated position of the Russian companies and the state is being formed by the Energy Ministry,” Gazprom Neft said in a statement.
TASS cited another source as saying that the final decision could be made at a meeting between producers and the ministry by the end of November. Russia and the Organization of the Petroleum Exporting Countries are scheduled to meet in Vienna on November 30.
Novak said Russia would determine its position on a possible extension of the deal later in November. He also said he would discuss the possible deal extension with Russian oil producers.
The ministry did not respond to written questions. Gazprom Neft’s spokesman declined to comment. Reuters reported
last month, citing OPEC sources, that producers were leaning towards prolonging the agreement until the end of 2018, though the decision could be postponed
until early next year depending on the market.
Putin said in October that
the deal between OPEC and rival oil producers could be exten-
ded to the end of 2018. OPEC plus Russia and nine other producers, have cut oil output by about 1.8 million barrels per day since January.