PJSC “RUSSNEFT” WILL FOLLOW THE MINISTRY OF ENERGY RECCOMENDATIONS TO REDUCE THE OUTPUT

The press-office of the Company reported: “We will honestly execute all the decisions of the President and the Government of the Russian Federation to reduce the output, which is related to the agreement with OPEC members”. Talking on this subject earlier Evgeniy Tolochek, PJSC “RussNeft” President highlighted that the Company was ready to suspend the marginal wells. He pointed out in late November: “Should the centralized decision be made, we will fulfill it for sure. First and foremost we will suspend the marginal wells”. As RNS said earlier, PJSC “RussNeft” Board of Directors will approve of the Company’s Business Plan for 2017-2019. Apart from that the agenda of the board meeting contains the approval of the report in the current state and major directions of PJSC “RussNeft” activity development in oil and gas production. According to 2015 results the Company’s oil production made up 7.9 mln tons. PJSC “RussNeft” intends to increase the oil production up to 11 mln tons per year by 2025.

The meeting of non-OPEC members was held on December 10, 2016 in Vienna. 12 countries took part in this meeting. The agreement on cumulative output reduction by 558 thousand bbl. starting from January 2017 was signed. Russia agreed to cut the oil production by 300 thousand bbl. per day against the indicator of October 2016. Aleksandr Novak, the Head of the Ministry of Energy, specified that the cut will amount to 50-100 thousand bbl. per day in January 2017,  by the end of Q1 it will be 200 thousand bbl. per day and in April-May it will reach 300 thousand bbl. per day.  After the meeting with the representatives of the Russian oil companies on December 14 Aleksandr Novak  said that the Ministry of Energy and the companies agreed on the output cuts relatively to their share.