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Putin sets deadline for plans to support the Russian oil industry

MOSCOW: Russia President Vladimir Putin gave his government until June 15 to come up with a plan to support the country's oil industry, while production has declined under an agreement between the world's main producers.

According to a document published on the Kremlin website, Putin has ordered ministers to work at "special rates" that pipeline operators Transneft PJSC and Russian Railways JSC will charge for transportation of raw and petroleum products while the OPEC + agreement is in effect.

Igor Sechin, CEO of Russia's largest oil producer Rosneft PJSC, has called for an adjustment of transport rates to bring it in line with market prices.

Large oilfield servicing companies can be included in the government's list of systematically important companies, which makes them eligible for state support. As production falls, orders for servicing companies may fall by up to 40%, and even more so in some cases, Energy Minister Alexander Novak told Putin last month.

The Organization of Petroleum Exporting Countries and other producers, including Russia, agreed last month to cut global crude output by about a tenth, with oil prices rising by nearly 20 years. Russia and Saudi Arabia will bear the brunt of production restrictions, which are to last about two years, although the size of the cuts will decrease over time.

Novak said on May 18 that the country would "move forward fully according to production cuts". His comments indicated that Russia would insist on strict adherence to the terms of the agreement when the oil-producing countries would discuss the progress of the curb next month.

According to the Kremlin document, at the time of the implementation of the OPEC + agreement, oil companies should not be approved to fall below the production target set in oilfield development plans, which prepared a list of instructions after a meeting at the end of last month Does. energy sector.

News Source: oil&gas360

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