ST PETERSBURG, Russia (Reuters) – Vahid Alkapirov, head of Lukoil, Russia’s second-largest oil company, said on Thursday he expected the decision to OPEC+ . group Which includes major producers of crude to increase production during its meeting next month.
He said in an interview with Reuters that the current OPEC + agreement regarding oil production restrictions should be extended as soon as it expires next April.
OPEC+ is due to meet on July 1 to decide on production levels from August.
“The OPEC + agreement should be extended, it helps predict the price of (oil),” Al-Kabirov said. Participants may decide on a small increase in production of no more than 500,000 barrels per day at the next meeting.”
On Tuesday, the Organization of the Petroleum Exporting Countries (OPEC) approved an earlier decision to press ahead with production increases over the course of the current and next two months.
Under the current plan, the Organization of the Petroleum Exporting Countries and allies led by Russia will add 700,000 bpd in June and 840,000 bpd in July.
Alkaberov said Lukoil plans to increase its capital spending to 600-650 billion rubles next year as it embarks on new projects such as production in the Caspian Sea.
It is expected that the current year’s spending will reach 490 billion rubles, with the exception of the West Qurna-2 project in Iraq.
Al-Kabirov added that Lukoil also intends to start production in Zone 10 in Iraq at the end of 2022 or in 2023, with a production of 30,000 barrels per day.