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Russia on verge of ending oil cuts'
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Moscow Correspondent
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THE heads of Russia's oil majors are to meet Prime Minister Mikhail Kasyanov and other government officials today to discuss the country's oil export policy, which takes effect on July 1.
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Government and industry sources told Business Day they were certain Russia would end the export cut of 150000 barrels per day (bpd), in place since January 1.
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With crude oil output now approaching 7-million bpd, Russia is second only to Saudi Arabia as a global producer and exporter. But the country remains outside oil cartel Opec, and has agreed to its requests to limit exports to sustain oil prices.
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With prices for the Brent crude oil marker nearer the top end of the range favoured by Opec, Russian officials said they would export more in the second half of the year.
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Yukos, the second largest of Russia's oil producers, produces 1,2-million bpd. It plans 20% growth for the year.
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Sibneft, another of the Russian majors, is producing about 460000 bpd, and plans 29% growth this year. Together Russia's top six producers have said they will add 500000 bpd to their outputs this year an 11% increase compared with last year.
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Company officials said they had told Kasyanov in earlier meetings they expected to see the government support their production growth plans for this year.
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Russian growth, said an industry source in Moscow, "equates to almost 90% of the entire growth of world oil demand for the year, as forecast by the International Energy Agency".
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While the restriction of crude oil sales abroad has been in place, the Russian producers have used their refineries to boost exports of refined products.
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The domestic prices of crude oil and refined products started to rise in recent weeks, showing the market expects the lifting of the crude oil limit by the end of June.
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May 17 2002 12:00:00:000AM John Helmer Business Day 1st Edition
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