In line with the producer pact to curb supply, output from Russia’s top oil region in western Siberia is expected to fall by 15 percent this year.
Under a producer pact to reduce output from May 1 to stabilise oil markets, Khanty-Mansiysk in western Siberia stands to absorb the biggest cut. The region accounts for a little under 50 percent of all oil produced in Russia.
The supply deal left oil producers haggling over how the production cuts should be shared. With no exceptions for big projects led by foreign companies, Russia’s energy ministry last month told oil companies to cut production by 20 percent each.
To remove 10 million bpd from global markets, Russia is part of a wider output cut deal between the OPEC and non-OPEC members. Excluding condensate, Russia has to produce 8.5 million bpd of oil only, under the deal.
