Lukoil thinks Russia's actual oil production cut to start in Q2 2017
MOSCOW. Dec 2 (Interfax) - The real decline in oil production in Russia will start in Q2 2017, Lukoil Vice President Leonid Fedun told journalists.
"Russia only starting in Q2, will most likely start to really reduce something [...] Technologically this is not immediately, we don't have a valve, which can stop production," he said.
"Technically, this would involve the following: we will simply halt the inefficient well stock: the low margin, the highly watered. Naturally, these development projects will progress. Production at inefficient wells will be reduced, due to this we will control production. Our partners in OPEC will do the same - reducing the production of difficult oil," Fedun said.
"For Russia producing 10 million barrels at a price of $50-$60 is more profitable than producing 15 million barrels at $40. This is simple arithmetic. Plus, oil is a non-renewable resource, and it needs to be sold at as high a price as possible," he said.