Russia Will Defy Chavez's Call to Cut Oil Output, Kudrin Says
By Halia Pavliva
Nov. 8 (Bloomberg) -- Russia, the world's second-biggest oil producer, will defy calls from Venezuelan President Hugo Chavez to join the Organization of Petroleum Exporting Countries in cutting output and pursue an ``independent'' strategy, Finance Minister Alexei Kudrin said.
``The government isn't planning any restrictions of oil production in the near future,'' Kudrin, who also serves as deputy prime minister, said in an interview in Sao Paulo today. ``We don't want to impose administrative barriers for restricting production. Oil businesses should estimate their own risks.''
Chavez said Oct. 28 he had asked Russia to work with OPEC to reverse the slide in oil prices, which have fallen more than 50 percent in the past four months. OPEC, supplier of more than 40 percent of the world's oil, announced production cuts during September and October and may announce a further reduction at a Dec. 17 meeting Algeria, OPEC president Chakib Khelil said today.
Russia cut its forecast for the price of Urals, the country's major blend of oil, to $50 a barrel in 2009 on average, from $95 a barrel previously, Kudrin said. Urals crude traded at $55.71 a barrel on Nov. 7, 61% below its high of $142.50 in July.
``We are holding consultations with the OPEC and our representatives are present at the OPEC meetings,'' because Russia is interested in learning about new technologies of oil production and ways of financing the development of oil fields, Kudrin said.
Russia's biggest oil-producing companies have private shareholders. The country's oil and gas pipelines are controlled by the state.
``Unlike in many OPEC countries, many of our oil fields are being developed by private companies,'' Kudrin said. ``It's too early'' to talk about whether Russia would consider becoming an OPEC member during the next ten years, he added.
To contact the reporter on this story: Halia Pavliva in New York at [email protected].
Last Updated: November 8, 2008 15:11 EST
By Halia Pavliva
Nov. 8 (Bloomberg) -- Russia, the world's second-biggest oil producer, will defy calls from Venezuelan President Hugo Chavez to join the Organization of Petroleum Exporting Countries in cutting output and pursue an ``independent'' strategy, Finance Minister Alexei Kudrin said.
``The government isn't planning any restrictions of oil production in the near future,'' Kudrin, who also serves as deputy prime minister, said in an interview in Sao Paulo today. ``We don't want to impose administrative barriers for restricting production. Oil businesses should estimate their own risks.''
Chavez said Oct. 28 he had asked Russia to work with OPEC to reverse the slide in oil prices, which have fallen more than 50 percent in the past four months. OPEC, supplier of more than 40 percent of the world's oil, announced production cuts during September and October and may announce a further reduction at a Dec. 17 meeting Algeria, OPEC president Chakib Khelil said today.
Russia cut its forecast for the price of Urals, the country's major blend of oil, to $50 a barrel in 2009 on average, from $95 a barrel previously, Kudrin said. Urals crude traded at $55.71 a barrel on Nov. 7, 61% below its high of $142.50 in July.
``We are holding consultations with the OPEC and our representatives are present at the OPEC meetings,'' because Russia is interested in learning about new technologies of oil production and ways of financing the development of oil fields, Kudrin said.
Russia's biggest oil-producing companies have private shareholders. The country's oil and gas pipelines are controlled by the state.
``Unlike in many OPEC countries, many of our oil fields are being developed by private companies,'' Kudrin said. ``It's too early'' to talk about whether Russia would consider becoming an OPEC member during the next ten years, he added.
To contact the reporter on this story: Halia Pavliva in New York at [email protected].
Last Updated: November 8, 2008 15:11 EST
