Russia reduced oil production by 1.5 times less in August than required by the agreement with OPEC+. But they promise to rectify the situation in September.
“In August, within OPEC+, Russia is at the level of a decrease in oil production of 143 thousand barrels per day compared to October 2018”, said Head of the Ministry of Energy of the Russian Federation, Alexander Novak.
This is 1.5 times less than required by the OPEC+ deal. Under this agreement, Russia should reduce oil production compared to October 2018 by 228 thousand bpd.
“A decrease in production compared to previous months is due to the technical aspects of resolving the situation associated with clearing the pipeline system from oil with an increased content of organochlorine compounds”, the Minister explained.
According to him, in July the reduction in production amounted to 289 thousand barrels per day, in June – 278 thousand barrels per day.
“In September 2019, Russia intends to fully comply with the agreed production levels within OPEC+ cooperation”, Novak assured, noting that already at the end of August the reduction was at the level of 299 thousand barrels per day.
Recall that the supply of contaminated oil began in April 2019. Then the company Belneftekhim announced deterioration in the quality of Urals brand oil exported via the pipeline from Russia. Separate samples showed an excess of the permissible norm of chlorides by 100 times. Belarus estimated the damage caused to the Mozyr Oil Refinery as a result of oil pollution in the Druzhba oil pipeline at $20 million. On August 9, the Belarusian side announced that the pipelines were completely cleaned.
Ukrtransneft said that cleaning of pipes could take 5 months. The Ukrainian company received 2.3 million euros of compensation.