MOSCOW (Sputnik) — A potential oil production freeze in Russia would essentially cut the planned output for 2017 by up to 300,000 barrels per day, Russian Energy Minister Alexander Novak said Thursday.
"It is actually a rather complicated and tough situation for us, because as you know according to our plans there is production growth next year," Novak told reporters. "Therefore, maintaining [output] at the current level we are making a contribution. For us it is in fact a reduction of 200,000-300,000 barrels [per day] of production."
The minister reassured that Russia's position favoring production limits as outlined by President Vladimir Putin has not changed.
There is a good chance that major oil producing countries will reach an agreement next week to limit output and stabilize the market, Novak said.
"I am positive-minded. I believe that we have quite good chances," Novak told reporters of the anticipated Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna next Wednesday, November 30.
Novak explained that Russia is working mainly with non-OPEC countries to attract as many countries as possible to take part in the stabilization efforts, with the exception of the United States and Norway.
Saudi Arabia has not demanded Russia to limit oil production, the Russian energy minister said.
"No. We have very constructive talks. We met in Doha recently," Novak told reporters.
It is necessary to wait for the results of the talks, which are currently underway within the Organization of the Petroleum Exporting Countries (OPEC), the energy minister noted.
"I can just note that these talks are positive enough," Novak added.
Oil market turbulence caused oil prices to plunge from $115 per barrel in June 2014 to less than $30 per barrel in January 2016, causing hardship for oil exporters and placing a number of global oil producers at risk of bankruptcy. Prices have partially and are currently at around $45-50 per barrel.
