Tuesday, 17 November 2015 18:59
MOSCOW: Russian oil production may fall by up to 10 million tonnes in 2017 from projected levels for 2015 and 2016, affected by western sanctions that reduce companies’ ability to raise funds, First Deputy Energy Minister Alexei Texler said on Tuesday.
Russian oil and gas condensate production hit a new post-Soviet high in October, rising by 0.4 percent month on month to 10.78 million barrels per day (bpd).
Texler told reporters the ministry was forecasting oil output at around 533 million tonnes this year or 10.7 million bpd, with the same projection for next year when oil output should be supported by bigger gas condensate production.
“Possible reduction may come in 2017, with a potential decline of up to 10 million tonnes,” Texler said, adding that Russian oil firms are lacking foreign financing due to sanctions imposed over Moscow’s role in the Ukraine crisis.
Russia has constantly refused to cooperate with OPEC on supporting oil prices, currently under $ 50 per barrel due to global oversupply, which analysts expect to persist at least for some time next year until a natural reduction in output comes.
