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Russia will fulfil terms of OPEC+ deal in January, says Energy Minister

January 16/ 09:04

Moscow. Russia will fulfill the terms of the OPEC+ agreement on reduction of oil production in January, Energy Minister Alexander Novak told reporters on Wednesday.

"Naturally, we have obligations, we will fulfill them," he said, answering a question about the prospects for implementation of the OPEC+ deal in January.

According to the Energy Ministry, in December 2019, Russia’s implementation of the OPEC+ deal was 2.6% above the target. The country reduced oil production by 234,000 barrels per day in comparison with the level of October 2018 (228,000 per day - the deal is tied to the production data of that month). Russia was able to exceed the target after the OPEC+ decided to exclude the calculation of gas condensate in the quota for the country's reduction volume.

OPEC+ countries (24 oil exporting countries, including Russia) have been jointly managing oil production volumes since 2017. At a meeting in July, they extended agreements to reduce oil production by 1.2 mln barrels per day to the level of October 2018. Of this volume, 812,000 barrels per day fall to the share of OPEC countries. The agreement is valid until the end of March 2020, told TASS.

Later, at a meeting in early December 2019, OPEC+ countries decided to intensify reduction of oil production to 1.7 million barrels per day until March. Russia’s quota has been increased from 228,000 to 300,000 barrels per day to the level of October 2018. Russia should comply with this quota during the first quarter of the year.

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