(MENAFN- AFP) Russia's energy ministry said Wednesday the country's oil-producing companies had backed an initiative to reduce crude output in line with an OPEC deal.
"All companies supported our proposals to limit the level of output," Russian news agencies quoted a ministry representative as saying after a meeting between Energy Minister Alexander Novak and oil companies.
Novatek chief Leonid Mikhelson told reporters "everybody supports the ministry" in its initiative, Interfax news agency reported.
After months of disagreement, OPEC members last week hammered out a deal to cut oil output for the first time in eight years.
Moscow -- which is not a member of the oil cartel -- has said it is ready to reduce crude output by 300,000 barrels a day in the first half of next year.
OPEC and non-OPEC members are set to meet in Vienna Saturday to discuss the implementation of the deal.
But Novak's meeting with oil companies apparently did not put to rest all concerns regarding how Russia will slash its production.
"There were no recommendations," Russian news agencies quoted Lukoil chief executive Vagit Alekperov as saying. "No decision was made."
Earlier this week Alekperov warned that Russia would be unable to cut its oil output until the second quarter of 2017 because there are "no valves to stop production."
Transneft president Nikolai Tokarev meanwhile said that the country could only cut its production starting in March because halting work at oil wells in the winter could damage them.
By cutting 300,000 barrels a day, Russian will produce some 10.9 million barrels a day -- a figure higher than when Russia had attempted to agree on a production freeze with OPEC members in the spring.
The slide in oil prices and Western sanctions over Moscow's role in the Ukraine crisis have pummelled the Russian economy.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.