Lukoil expects OPEC+ agreement to increase oil production at July meeting By Reuters

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© Reuters. Vahid Alkapirov, head of Lukoil, in a photo from the Reuters archive.

By Olesya Astakhova and Vladimir Soldatkin

ST PETERSBURG, Russia (Reuters) – The head of Lukoil, Russia’s second-largest oil company, Vahid Alekperov, said on Thursday he expected the OPEC+ group of major oil producers to decide to raise output at its meeting next month.

He said in an interview with Reuters that the current OPEC + agreement regarding oil production restrictions should be extended as soon as it expires next April.

OPEC+ is due to meet on July 1 to decide on production levels from August.

“The OPEC + agreement should be extended, it helps in forecasting the (oil) price. The participants may take a decision to increase production with a small amount of no more than 500,000 barrels per day at the next meeting,” Alkberov said.

On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) approved an earlier decision to press ahead with production increases over the current and next two months.

Under the current plan, the Organization of the Petroleum Exporting Countries and allies led by Russia will add 700,000 bpd in June and 840,000 bpd in July.

Alkaberov said that Lukoil plans to increase its capital spending to between 600 and 650 billion next year as it embarks on new projects such as production in the Caspian Sea.

It is expected that the current public spending will reach 490 billion rubles, with the exception of the West Qurna-2 project in Iraq.

Al-Kabirov added that Lukoil also intends to start production in Zone 10 in Iraq at the end of 2022 or in 2023, with a production of 30,000 barrels per day.

(Prepared by Doaa Muhammad for the Arabic Bulletin – Editing by Mahmoud Salama)

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