Russia is likely to call on fellow oil producers to change the way Moscow's...
MOSCOW/LONDON - Russia is likely to call on fellow oil producers to change the way Moscow’s output is measured when most of the world’s biggest oil-producing nations meet next month in Vienna, Russian and OPEC sources say.
Unlike Saudi Arabia and other OPEC producers, Russia has been including condensate - a high-premium light type of crude oil mainly extracted during gas production - in its crude oil production numbers. “Russia will definitely escalate the condensate issue at the December meeting as its production will be growing,” one of the sources familiar with the Russian position said.The sources didn’t say whether Russia would make other agreements with OPEC conditional to OPEC agreeing to changing Moscow’s quota such as extending their oil production cuts to next year or deepening them.
Russian Energy Minister Alexander Novak said on Wednesday the OPEC+ meeting may discuss adjusting oil output quotas, but did not elaborate. The Russian energy ministry did not respond to a request for comment. “It is difficult to achieve higher output of gas without increasing output of condensate. So essentially, condensate is coming from our gas, not from our oil industry. If you try to reduce condensate production while boosting gas output, it badly affects the fields’ profile,” the second source said.
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