04:22 GMT +326 February 2017
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    An employee of Gazprom-Neft's Novosibirsk petroleum base near fuel storage tanks

    Gazprom Neft May Suspend Oil Production at Some Wells in 2017 CEO

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    Chief executive said that Russia’s oil giant Gazprom Neft may temporary stop production at several oil wells but the main bulk of output cuts will be due to lower production growth rates.

    MOSCOW (Sputnik) Russia’s oil giant Gazprom Neft may temporary stop production at several oil wells but the main bulk of output cuts will be due to lower production growth rates, the firm’s chief executive said Tuesday.

    "It is quite possible we will decide to freeze production at some wells. This will be part of an optimization effort aimed at attaining the maximum economic yield. Of course, each well and oil field has its own economy," Alexander Dyukov told reporters.

    He added Gazprom Neft planned to slow down production growth rate to meet its commitments under an agreement with the OPEC group of oil producers, although it initially planned to boost production in 2017.

    Russia's Gazprom Neft expects to produce up to 4.5 percent more hydrocarbons and 5 percent more oil in 2017, the firm's chief executive said.

    "We plan that production growth next year will amount to 4-4.5 percent for hydrocarbons, 4.5-5 percent for liquids, mostly oil," Alexander Dyukov told reporters.

    Dyukov said Gazprom Neft's 2016 hydrocarbon output was expected to grow by 7.7 percent year-on-year to 85.8 million tonnes of oil equivalent.

    Russia's oil giant Gazprom Neft expects a significant rise in net profit this year, its chief executive Alecander Dyukov said Tuesday.

    "We expect a significant growth in net profit in 2016," Dyukov told reporters.

    He said a higher net profit would possibly lead to an increase in dividends paid to Gazprom Neft's shareholders.

    "The final decision is up to the shareholders’ council, but we can expect the amount of dividends in 2016 to be higher than in 2015. We anticipate that net operating profit will continue to rise in the years to come, increasing dividend payments," he explained.

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    oil output cuts, oil production, Gazprom Neft
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