Gazprom Neft Will Not Cut Oil Production Over OPEC+ Decision - CEO

MOSCOW (Sputnik) - Gazprom Neft, the oil producing subsidiary of Gazprom, will not cut oil production because of the decision of the alliance of Organization of the Petroleum Exporting Countries and non-cartel producers (OPEC+) to decrease oil production, Alexander Dyukov, the chair of the management board of Gazprom Neft, said on Thursday.

OPEC+ alliance agreed last week to cut oil production by 2 million barrels per day from November and will take production levels agreed for August as a reference point. The move was made in response to uncertainty in global oil market outlooks, partly caused by Western sanctions on Russian energy deliveries and the G7 plans to introduce a price cap on Russian crude. The decision received backlash from the US, which demanded an increase in production to combat rising domestic prices.

"As for our company, we produce [oil] according to the quota, not above the quota. We will not be required to cut production volumes," Dyukov said in a televised appearance on the Rossiya 24 broadcaster.

The chair added that the physical reduction in oil production under the deal will be one million barrels per day.