The oil output cuts in Russia have actually been keeping back its leading manufacturer Rosneft from completely understanding its capacity, the president of the state-controlled oil giant, Igor Sechin, stated on Wednesday.
” I must keep in mind that Rosneft has actually been restricting petroleum production in one method or another given that 2017, which avoids the Business from completely releasing its capacity,” Sechin stated in a declaration going over Rosneft’s first-half efficiency.
This year alone, Russia has actually promised to cut its oil production by 500,000 bpd. On top of this, Moscow has actually likewise guaranteed to minimize its oil exports in August by another 500,000 bpd and to cut September deliveries by 300,000 bpd.
That’s not the very first time Sechin has actually grumbled about the OPEC+ production cuts, as part of which Russia has actually been suppressing output in one method or another for more than 5 years.
In June this year, Sechin stated that Russia is exporting a smaller sized share of its oil output, losing market share compared to other OPEC+ members. Some OPEC+ members are exporting as much as 90% of their oil output while for Russia, the share is around 50% of the overall, according to Rosneft’s magnate.
Rosneft raised its oil and gas production by 7% in the very first half of 2023, however its output needed to be reduced in the 2nd quarter, “provided external production restrictions,” Sechin stated today.
Rosneft’s liquids production fell by 2.2% quarter-on-quarter to 3.9 million barrels daily in Q2, on the back of the production cap.
Profits fell by 25.3% in the very first half of 2023 compared to the exact same duration in 2015, mainly due to the downturn in oil costs, the business stated.
Rosneft’s operations are likewise challenged by the constant tax modifications Russia has actually executed this year.
” The altering tax environment, consisting of legal modifications currently enacted and brand-new efforts, makes the Business’s operations more difficult,” Sechin stated.
By Tsvetana Paraskova for Oilprice.com
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