SOCHI: Russia, the world’s top oil producer, is ready to meet with Opec and non-Opec oil producers to discuss the situation on the global oil markets if such a meeting was called, its energy minister said on Saturday.

A separate meeting between Russian and Saudi officials was being planned for the end of October, to discuss energy issues and some other projects, Russian Energy Minister Alexander Novak told reporters.

On Friday, Novak’s colleague, Russian First Deputy Energy Minister Alexei Texler, had said he was not aware of such meetings and that Russia would stick to its plans not to cooperate with the Organisation of the Petroleum Exporting Countries (Opec).

Russia refused to cooperate with Opec last November in a move to defend its market share. Lack of storage and harsh weather conditions also limit Moscow’s ability to cut its exports, officials say.

Cash-strapped Opec-member Venezuela has for months been pushing for an emergency Opec meeting with Russia to stem the tumble in prices. Opec next plans to meet in December for a regular review in production quotas, unchanged since last year.

“If such consultations are to happen we are ready to take part,” Novak said. He did not say when and if such a meeting may take place.

Novak also said proposals on taxation and export duties for the oil industry from Russia’s Finance Ministry could lead to Russia losing between 7 to 10 million tonnes in output next year.

Russia is expected to produce 525m tonnes or 10.5m barrels per day (bpd) next year, Novak said.

Russian oil output is near post-Soviet highs of about 10.7m barrels a day. The country has proven resistant to low oil prices as a weak rouble has offset losses and made domestic oil production one of the cheapest globally in dollar terms.

Its finance ministry has proposed to change oil taxation in a way that would bring in around 600 billion roubles ($9bn) in additional revenues for the budget.

Facing protests from the oil industry, it has also proposed the softer measure of keeping Russia’s oil export duty mechanism unchanged next year — a move that could bring around 200bn roubles to the budget — instead of going through with an agreed cut.

However, oil firms and the Energy Ministry have said such measures could result in oil production being slashed, with some critics saying output could be cut by around 100m tonnes over three years.

The chief executive of Russia’s top oil company Rosneft , Igor Sechin, addressing Prime Minister Dmitry Medvedev in Sochi on Friday, has called for finding alternative sources to help the budget.

However, reductions in output would not automatically follow, the Finance Ministry has said.

“From our point of view, the production should not fall as all investments for 2016 were already made,” Ilya Trunin, the head of the taxation department in the Finance Ministry, told reporters.

Published in Dawn, October 4th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play

Opinion

Editorial

Judiciary’s SOS
Updated 28 Mar, 2024

Judiciary’s SOS

The ball is now in CJP Isa’s court, and he will feel pressure to take action.
Data protection
28 Mar, 2024

Data protection

WHAT do we want? Data protection laws. When do we want them? Immediately. Without delay, if we are to prevent ...
Selling humans
28 Mar, 2024

Selling humans

HUMAN traders feed off economic distress; they peddle promises of a better life to the impoverished who, mired in...
New terror wave
Updated 27 Mar, 2024

New terror wave

The time has come for decisive government action against militancy.
Development costs
27 Mar, 2024

Development costs

A HEFTY escalation of 30pc in the cost of ongoing federal development schemes is one of the many decisions where the...
Aitchison controversy
Updated 27 Mar, 2024

Aitchison controversy

It is hoped that higher authorities realise that politics and nepotism have no place in schools.