|Following the historic OPEC agreement Vienna on Wednesday in an effort to finalize that deal. Russia daily oil production rose to an average of 11.21 million bpd in November, a new post-Soviet era high, energy ministry data showed on Friday.|
Russian Deputy Energy Minister Kirill Molodtsov announced that Russia plans to use its post-Soviet era record high November oil production as its baseline when it cuts output. Russia has promised to gradually cut output by up to 300,000 barrels per day (bpd) in the first half of 2017 as part of the deal.
"The peak of daily production for November was 11.231 million barrels, all our agreements will clearly be formed around this figure" Molodtsov told a conference in Moscow.
The November production is 500,000 bpd higher than in August, so as we expected and have seen the intervening months have been used by the producers to max their ceiling baseline. Of course this is good business in such a competitive world as oil. August was when Russia and OPEC reached their preliminary agreement in Algiers to cut production.
This week's follow-up agreement was the first between OPEC and Russia since 2001 with almost all OPEC members agreeing to cut from October levels. However Russia will use its November-December output levels, Energy Minister Alexander Novak told reporters on Thursday.
While November's production rose only slightly from October, by just 10,000 bpd, ministry data showed it was a post soviet record as we said.
Lukoil and Surgutneftegas raised output in November while production slipped at fields operated by Rosneft, Gazprom Neft and their joint venture Slavneft, preliminary data showed. Rosneft, Gazprom Neft and Lukoil have all launched new fields this year and increased drilling, despite low oil prices. Energy Minister Novak said on Thursday that all Russian companies would contribute to Russia's planned output cut.
Novak also said Azerbaijan, Kazakhstan, Mexico, Oman, Bahrain and other non-OPEC producers could join the deal and that he expected them to jointly match Russia's cut of 300,000 bpd.More Energy News Norway Troll Oil Production To Highest Output Level Since 2009 Singapore Planning to Invest over $1B in Offshore Oil and Gas Projects From Istanbul to Vienna The OPEC Oil Production Deal Schedule Major Oil & Gas Firms Stay Away from India Gas Field Auctions
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