Russian oil and gas companies should prepare for long-term restrictions as sanctions are likely to remain for at least another 10 years, warns the head of the country’s second-largest oil company Vagit Alekperov, RT reported on October 12, 2017.
«Our current strategic plan for the next 10 years is that sanctions will remain in place. I don’t perceive that sanctions will be removed in the coming years, and even [when they are] it will be a lengthy and very complicated process,» said CEO of Lukoil in an interview with the Financial Times.
While sanctions have not affected Russia’s oil exports, they do have an impact on joint projects with major international energy firms, particularly American companies.
Exxon Mobil has been forced to shelve plans in Sakhalin and the Russian Arctic.
Sanctions also limit the ability of Russian energy companies from buying equipment for oil and gas extraction.
Regarding the oil price, Alekperov says he’s satisfied with the agreement between OPEC, Russia and other oil producers to cut output.
«If the price is less than $50, then we must go for an extension. If it is $55, then there is no need. Just a gradual withdrawal,» he said.
«The most important thing, for now, is to not to allow another time of $100 a barrel, that would be major trouble for the industry. We want to have a predictable level of $55-$60 at least for the 10 years to come . . . and keep both consumers and producers happy,» Vagit Alekperov added.