Lukoil conservatively expects that oil prices will top $50 per barrel within 1.5-2 years, the company's first vice president, Alexander Matytsyn, said
MOSCOW (Pakistan Point News / Sputnik - 04th June, 2020) Lukoil conservatively expects that oil prices will top $50 per barrel within 1.5-2 years, the company's first vice president, Alexander Matytsyn, said.
"We see no fundamental reason for changing our strategic price target, which is $50 per barrel, and we conservatively expect the price to exceed this level on the horizon of 1.5-2 years," Matytsyn said during a phone conference.
Lukoil has optimized its investment program for 2020 due to worsening market situation, and expects it in the range of 450-500 billion rubles ($6.48-$7.21 billion), as it can resume investment in some projects depending on the situation, Matytsyn said.
He emphasized that the reduction in capital costs would not affect the achievement of the company's strategic goals and key industrial and environmental aspects.
Since May 1, Lukoil has been fully compliant with its oil production cut under the OPEC+ deal, reducing the output by 310,000 barrels per day, and intends to continue to do so, the company's top manager said.
"As we said, our quota for production cuts is 310,000 barrels per day. We are 100 percent compliant with it since May 1. And we are going to fulfill it while it is in force," he said.
On April 12, OPEC+ agreed to cut oil output by 9.7 million barrels per day in May and June, 7.7 million barrels in the second half of the year, and 5.8 million barrels through April 2022. The countries agreed to use October 2018 as the baseline for reduction, but Russia and Saudi Arabia use 11 million barrels per day as their mark, with reductions by 23 percent, 18 percent and 14 percent.
