BERLIN (Reuters) - Russia’s Rosneft, the world’s top listed oil company by output, is working to be ready to compete on global oil markets after the deal with OPEC on oil curbs expires, Chief Executive Igor Sechin said on Thursday.
Rosneft is key for Russia’s efforts to meet obligations under the deal with the Organization of the Petroleum Exporting Countries, under which Moscow has promised to cut production by 300,000 barrels per day.
This week, Russia, which delivered the cut in full last month, and Saudi Arabia agreed on the need to extend the global deal until March 2018.
Sechin, on a visit to Berlin to open the Rosneft Deutschland office, said Rosneft will plan its work this year so as to be competitive on the global oil market when the agreement expires.
“We will plan our work till the year-end in the way that while complying with the agreements, paying a special attention to mature fields not to lose oil resources and do preparations needed for new field launches, so in case the deal is stopped be ready for competitive work on the markets and not to lose our market share,” Sechin said.
He added Rosneft was cutting production at its newest fields under the OPEC deal, not touching mature fields as there was a risk that they may not come back on-line in full after the cuts.
Sechin repeated that both Russia and Saudi Arabia should work out mechanisms for a “smooth” exit from the agreement when it is over to avoid market shocks.
“I would not think beyond March of the next year,” Sechin said when asked if the market would be balanced by then and if a further extension of the global deal may be needed. “We should see how shale oil production (in the United States) will perform.”
Reporting by Katya Golubkova; writing by Maria Tsvetkova; editing by David Evans