Russia remains committed to its production cut agreement with OPEC – according to the notes from a Credit Suisse Russian investor trip.
The company’s oil and gas team hosted an event in Moscow as part of the annual London Global Energy conference, where they met with the country’s main oil and gas companies and relevant ministries.
The notes said that Russia’s compliance so far, as well as agreements between Saudi Arabian and Russian companies suggest that their commitment unlikely to change.
The oil and gas team also believe liquid production growth is likely to continue through to the early 2020s.
The notes claim that Russian majors are FCF generative at $40/bbl, which provides room for investments to grow.
Another cause for optimism identified was that increasing production will be straightforward.
The notes said that Rosneft, Russia’s largest producer, has been deferring the launch of greenfields rather than cutting brownfield volumes.
The team also believe that ramping-up brownfield volumes is unlikely to be too expensive for firms.