Saturday 23 May 2020

Putin Orders Support for Russia’s Oil Industry Amid OPEC+ Cuts - Bloomberg

OPEC+, Russia Oil News: Vladimir Putin Orders Support - Bloomberg:

Russian President Vladimir Putin gave his government until June 15 to come up with a plan to support the country’s oil industry while output is slashed under an agreement among the world’s main producers.

Putin ordered ministers to work out “special rates” that pipeline operator Transneft PJSC and Russian Railways JSC will charge for transporting crude and petroleum products while the OPEC+ agreement is in effect, according to a document published on the Kremlin website. Igor Sechin, chief executive officer of Rosneft PJSC, Russia’s biggest oil producer, has called for an adjustment of transportation rates to bring them into line with market prices.

Large oilfield servicing companies could also be included in the government’s list of systemically important companies, making them eligible for state support. As output falls, orders for servicing companies may fall as much as 40%, and even more in some cases, Energy Minister Alexander Novak told Putin last month.

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