MOSCOW (Sputnik) – The ongoing fluctuations of oil prices were nothing to be happy about but nor have they been too dramatic, Rosneft CEO Igor Sechin said during the International Review program aired by Rossiya 24 television on Friday, adding that the company was ready for the unfolding scenario.
The Russian energy company was prepared for steep drops in oil prices due to the potential collapse of the OPEC+ oil production cuts deal, Rosneft CEO went on to say.
Sechin also expressed the belief that the oil market was going through a crisis due to several factors, such as politics, sanctions, and the coronavirus.
Rosneft Able to Maintain Current Production Level
According to the CEO, Rosneft’s operating costs will allow it to work for a long time in the current market conditions. The company is able to maintain the current oil production level for another 22 years without additional investment in prospecting.
Rosneft’s oil and condensate production exceeded 230 million tonnes in 2019.
Oil Prices to Grow to $60 Per Barrel
The price for oil will grow to $60 per barrel by the end of 2020, Rosneft CEO Igor Sechin said, forecasting positive developments in the energy market within six months.
The CEO of the Russian energy company also expressed the belief that positive developments would be seen within six months already since the current low prices did not allow US shale oil producers to work efficiently. According to him, this will promote the normalization of the market.
Sechin stressed that Russia should seek to retain its share of the market regardless of oil price fluctuations.
Rosneft OPEX Comparable to Saudi Aramco
Rosneft’s operating expense (OPEX) is comparable to Saudi Aramco’s operating expense, but since Rosneft does not engage in predatory pricing, its operational efficiency may be higher than that of the Saudi company, Rosneft CEO Igor Sechin said.
Rosneft Partners Suffer More Than Company Itself
US sanctions hit Rosneft partners, in particular, American banks, harder than the company itself, Igor Sechin told reporters.
Earlier in the week, oil prices dropped following the 6 March OPEC+ meeting in Vienna which sparked the crash. OPEC+ failed to reach an agreement amid a Saudi push to raise production cuts by 1.5 million barrels per day through the end of 2020, on top of the 2.1 million barrels per day in cuts already agreed upon.