Russian energy company Rosneft will optimize its 2020 investment program by reducing it from 950 billion rubles ($13 billion) to 750 billion rubles due to the recent decisions by OPEC+ to cut crude output and the current state of the global oil market, Igor Sechin, the company's head, said on Tuesday
MOSCOW (Pakistan Point News / Sputnik - 12th May, 2020) Russian energy company Rosneft will optimize its 2020 investment program by reducing it from 950 billion rubles ($13 billion) to 750 billion rubles due to the recent decisions by OPEC+ to cut crude output and the current state of the global oil market, Igor Sechin, the company's head, said on Tuesday.
"Given, let us say, the dramatic state of the global oil market and the decisions to reduce [oil] production, we, of course, will have to optimize part of the capital costs. We will try to keep our investment program at around 750 billion [rubles]," Sechin said at a meeting with Russian President Vladimir Putin, adding that the investment program will be reduced by 200 billion rubles.
According to the official, the company will have to optimize its activities in order to maintain its financial and economic stability amid the reduction in crude production.
On April 12, the Organization of the Petroleum Exporting Countries (OPEC) and its allies � the so-called OPEC+ group � agreed to reduce oil output in a bid to stabilize the market amid a sharp decrease in demand fueled by the coronavirus-related restrictions and their previous failure to agree on such a deal.
The involved states are set to cut production by 9.7 million barrels per day in May and June, followed by 7.7 million per day for the second half of the year, and then by 5.8 million per day until April 2022.
