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Russia Major Contributor to Oil Output Cut Deal Commitment - Hess Corporation

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Hess Corporation CEO John Hess claims that Russia plays a major role in the serious commitment to the 2016 agreement between OPEC and non-OPEC countries to cut oil production.

Russian Minister of Energy Alexander Novak - Sputnik International
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Russia May Reach Agreed Oil Output Cuts by Late April
HOUSTON (Sputnik) — Russia plays a major role in the serious commitment to the 2016 agreement between OPEC and non-OPEC countries to cut oil production, Hess Corporation CEO John Hess told Sputnik on Monday.

"The OPEC-Non-OPEC deal is historic and there is serious commitment, and I think one of the major contributors to that is not just OPEC but it is Russia," Hess said on the sidelines of the CERAWeek energy conference in Houston, Texas. "I think it is very important that all the members of that agreement conform with that agreement to basically get rid of the supply overhanging inventory that exists, so we can get prices stabilize, so future investment can occur."

Hess did not answer, whether the company has any plans to return to Russia, though, noted that that the company had a very positive experience of work there.

"But right now with the low prices our focus is Bakken for short-cycle investment and Guyana for long-term investment… this is the time when you have to be unfortunately very selective, so our focus is investing there and not anywhere else… Our focus right is to get development in Guyana sanctioned, and that should come in the middle of the year," Hess added.

In November 2016, the OPEC states reached an agreement to cut oil production by 1.2 million barrels per day for the first half of 2017 to support the global oil prices. The accord was also supported by 11 non-cartel states, including Russia and Kazakhstan, which had joined the deal promising to reduce their oil output by 558,000 barrels per day. The deal was reached for a six-month period with a possibility to extend it.

Hess Corporation, headquartered in New York City, is a leading global independent energy company engaged in the exploration and production of crude oil and natural gas.

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