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News // Middle East and OPEC

OPEC’s Barkindo: Russia doing a good job on production cuts

10 March 2017 , 12:14Neftegaz.RU542

OPEC Secretary General Mohammad Barkindo has praised Russia’s commitment to the oil production cuts Opec and Non-Opec had agreed in December 2016. He was responding March 8, 2017, to journalists’ questions at a press conference during CERAWeek in Houston.

 

Asked about Russia’s level of compliance the OPEC Secretary General this week confirmed Russia had said from the start that it wouldn’t immediately be able to fully comply to the production cuts that had been agreed.

 

A day earlier, Russian Energy Minister Alexander Novak had said that Russia would meet its committed 300.000 boe per day by the end of March.

 

Commenting further on the matter, Barkindo said: «As far back as December, he (Novak) was very clear with us that he was not in a position to provide a 100 % level of conformity in the 1st month or 2nd month of the implementation, because of the structure of production in the Russian Federation.»

 

Russia’s pledged level of cuts makes around 50 % of the total non-OPEC contribution to the cuts.

 

Barkindo said that Novak had warned him that since Russia has multiple producing companies, some of them public, some private, that there would some problems initially, but in the course of time, they are going to ramp up their compliance to reach their target.

 

The OPEC Secretary General said: «He’s been working round the clock with all the companies, 200 or so companies. It’s not an easy task especially for something that is new to them. They had not been subjected to this type of mechanism before.»

 

According to a recent report by the International Energy Agency, Russia’s output was cut by 100 kb/d in January.

 

«Russia has done an excellent job in trying to mobilize 10 other countries to join us, and its commitment has never wavered, so we are confident that Russia would reach his target of 300.000 barrels a day in supply adjustment,» Barkindo said.

 

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