* Russia has refused to cooperate with OPEC
* Russian oil output revised down, still at post-Soviet
* Lukoil sees its output falling in 2016 - VP Fedun
(Adds details, quotes, oil statistics)
MOSCOW, Jan 25 Russia needs to start working
with OPEC to cut oil supplies to the world market to try to
support prices, Leonid Fedun, vice-president of Lukoil
, Russia's second largest oil producer, was quoted as
saying on Monday.
"In my opinion, if such a political decision is taken,
Russia should jointly work with OPEC to cut supply to the
market... It's better to sell one barrel of oil at $50 than two
barrels at $30," Fedun told TASS news agency in an interview.
OPEC and Russia, the world's top oil producers, have refused
to cooperate to help buoy global oil prices as they were
defending their market share from each other and the United
States, where shale oil output had taken off over recent years.
As a result, Brent has fallen to around $31 per
barrel from $115 in the middle of 2014, on the oversupply and a
weaker Chinese economy, causing shale oil production to decline
in the United States.
Weak oil prices are also hitting Russia's
commodity-dependent budget and the rouble, which touched
all-time lows of around 86 per U.S. dollar last week.
OPEC has always said it would agree to cuts if other
producers such as Russia joined such a move.
However, Russian officials have said severe weather
conditions do not allow a manageable production cut and that
they expected the global market to rebalance on its own after
the most costly producers cut output.
The Russian Energy Ministry has slightly revised down data
on oil production in the country in December to 10.80 million
barrels per day (bpd) from a preliminary reported 10.83 million
bpd, still its post-Soviet high.
Lukoil Chief Executive Vagit Alekperov told Reuters last
week that total oil production in Russia could decline by 2-3
percent this year and possibly more if the government raises
Lukoil's own oil output exceeded 100 million tonnes (2
million bpd) last year, the company said earlier.
It did not give a break down by regions, although energy
ministry data showed it was pumping an average of 1.7 million
bpd in Russia alone.
Fedun, a mastermind of Lukoil's expansion abroad, said the
company's output was unlikely to remain as high as last year but
did not give a figure.
"The practice of filling the market with cheap oil at any
cost is wrong -- half a year or a year later it could be sold at
twice as high," he said.
Fedun added Lukoil was preparing to cut production at its
West Qurna-2 project in Iraq.
"Earlier, the Iraqi government said that they are ready to
take out 300,000-500,000 bpd from the market. Our share will be
proportional," Fedun told TASS.
Iraq was pumping an average of 4.2 million bpd in December,
according to a Reuters survey, with production at West Qurna-2
last reported at 450,000 bpd.
(Reporting by Polina Devitt, Katya Golubkova and Vladimir
Soldatkin; Editing by Mark Potter and Keith Weir)