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Rosneft To Reduce Production By 24 Million Tons In 2020 Due To Opec+

Rosneft To Reduce Production By 24 Million Tons In 2020 Due To Opec+

Rosneft may reduce production by 24 million tons in 2020 in accordance with the OPEC+ deal, said Pavel Fedorov, the company's first Vice President, and Financial Director.

"As for the implementation of the Strategy-2022, the main messages remain unchanged, but as for production-it will be revised taking into account OPEC+. The company's production reduction level in 2020 is about 24 million tons, and in 2021 it will be 33 million tons relative to the approved business plan. We expect that there will be a decrease in 2022, given that the OPEC + agreement enters the territory of 2022, " he said.

Three months later, according to him, the company will hold a rebalancing of lower production in favor of a more unprofitable deposit.

At the same time, reducing CAPEX will not affect Samotlor, Rosneft will continue to fulfill its obligations, Fedorov assured.

According to him, Rosneft's capital expenditures in 2020 as a whole will decrease by about 200 billion rubles compared to the original plan. The same figure was called by the head of the company Igor Sechin on May 12 at a face-to-face meeting with President Vladimir Putin.

Fedorov said that of this amount, 180 billion rubles of cuts will fall on the "exploration and production" sector. At the same time, the reduction in Mature fields will amount to about 100 billion rubles.

He also said that even in the current unprecedented difficult conditions, Rosneft will not change the principles of its dividend policy and will allocate 50% of its net profit under IFRS to these payments.

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