President of Russia
  • Events
  • Structure
  • Videos and Photos
  • Documents
  • Contacts
  • Search
  • Search this website
President of Russia
Mobile version

President's
website
sections

  • Events
  • Structure
  • Videos and Photos
  • Documents
  • Contacts
  • Search
  • Search
  • For the Media
  • Subscribe
  • Directory
  • Version for People with Disabilities
  • YouTube Channel
  • Русский

President's
website
resources

  • President of RussiaCurrent resource
  • The Constitution of Russia
  • State Insignia
  • Send a Letter
  • Vladimir Putin’s Personal Website

Special
animal welfare
projects

  • Amur tiger
  • Beluga whale
  • Polar bear
  • Snow leopard
  • Far Eastern leopard

Legal
and technical
information

  • About website
  • Using website content
  • Personal data of website users
  • Contact website team

All content on this site is licensed under

Creative Commons Attribution 4.0 International

Presidential Executive Office2023
Events

Meeting with CEOs of oil companies

Vladimir Putin had a meeting with the CEOs of Russian oil companies to discuss the situation on the global hydrocarbons market and measures to retain the stability of Russia’s oil industry.

March 1, 2016
17:20
The Kremlin, Moscow
Before the meeting with CEOs of oil companies. Energy Minister Alexander Novak.
Meeting with CEOs of oil companies.
At meeting with CEOs of oil companies.
Before the meeting with CEOs of oil companies. President of LUKOIL Vagit Alekperov.

President of Russia Vladimir Putin: Good afternoon, colleagues.

I invited you to this meeting because I wanted to talk to the heads of Russia’s major oil companies, but not so much about the industry’s global issues – this is something we will touch upon later on and have a detailed discussion of the issues you have to deal with. Today we will consider prospects and trends on the global market and the needs of the national economy.

In this connection, I would like to say that overall 2015 has shown that the Russian oil industry is developing. Last year our oil companies produced a record 534 million tonnes of oil, which is 1.4 percent more than in 2014.

I would like to note the positive role of state measures to stimulate production in East Siberia, the Far East and the shelf and to develop fields with hard to extract reserves.

The environmental situation in the industry is also improving. Beginning in 2012, the share of recycled associated gas went up from 76 to 88 percent. We should note that there was a sharp increase over the past two years, from 77–78 to 88 percent, which is very good.

The supply of raw materials for refining inside the country remains high. More than half of all the oil produced in Russia goes to local refineries to produce added value. The degree of refining is also increasing.

Last year the export of Russian oil also grew. This is also another positive figure – the volume of export exceeded 241 million tonnes, which is 9 percent more than in the previous year.

We can all see how unstable the global hydrocarbon market is. It is influenced both by fundamental economic factors, primarily a noticeable slump in the world economy, and by speculative elements. All this, including political risks, affects the market.

As a result, over the past year the price of Urals crude oil dropped roughly three times. This is a very significant drop, a significant blow to companies’ revenues. Obviously, the oil companies launched their long-term investment programmes proceeding from a more favourable external market situation. Nevertheless, I would like to note that capital investment into oil production by Russian oil companies in 2015 was 7.8 percent greater than in 2014.

Our task is to retain the stability of Russia’s oil industry, to ensure its consistent development and the implementation of long-term projects. As you may know, the Energy Ministry and its Minister Alexander Novak personally, along with experts are working to resolve issues pertaining to the stabilisation of the world energy market and they regularly consult our partners, leading players on the world oil market. They are discussing measures to ensure market stability, and to balance supply and demand. As the Minister reported, they are negotiating with their partners and have practically reached agreement to the effect that this year we will not increase our production.

According to the Minister, you all agree with this proposal and some even have more radical suggestions, but not all support them. The purpose of our meeting today is for me to hear this from you. Do you really support this proposal made by the Minister? What do you think about it?

To be precise, the proposal is to freeze Russia’s oil production in 2016 at the level of January production. We are talking about an average figure for the entire 2016.

Let us discuss this proposal. I would like to hear your ideas.

<…>

Topics

  • Energy

Persons

  • Novak Alexander

Publication status

Published in sections: News, Transcripts

Publication date: March 1, 2016, 17:20

Direct link: en.kremlin.ru/d/51418

Text version

Text
4
Photo

Share
Direct link
http://en.kremlin.ru/events/president/transcripts/51418
Share
  • VK
  • LiveJournal
  • Send by email
  • Print
Send by email

Official Website of the President of Russia:

Meeting with CEOs of oil companies

http://en.kremlin.ru/events/president/transcripts/51418

Last updated at March 1, 2016, 21:45

Официальные сетевые ресурсы

Президента России

Official Internet Resources

of the President of Russia

Русский Английский
  • For the Media
  • Version for People with Disabilities
  • Telegram channel
  • YouTube Channel
  • State Insignia
  • Send a Letter
  • Vladimir Putin’s Personal Website
  • Putin. 20 years

Presidential Executive Office
2023