Russia’s state-owned oil giant Rosneft may cut its 2014 output by 2 milliontonnes(40,000 barrels per day), the daily Kommersant reported on September 3.
The sanctions-hit Russian oil producer became the largest producer by output when it acquired Russia’s third-biggest producer, rival TNK-BP, for $55 billion in March of 2013. Rosneft nearly doubled production to 206.8 million tonnes in 2013, but it has reduced drilling as part of cost cutting and because of disputes with contractors.
Asked about the report, Rosneft said in a statement it had managed to “stop a historic decline in production in several key regions in Western Siberia”, but those oil fields would still see a decline in production until 2020.
Data from the Energy Ministry showed on September 2 that Rosneft’s daily oil production was down 1.3% in August, year-on-year.
Meanwhile, Rosneft reportedly could fire as many as 1,000 employees, or 25% of the people working at the company, in an ongoing economy drive. The criteria for the layoffs are currently being worked out and firings could begin as soon as October, Kommersant reported.
“The company could cut 20% to 25% of the staff -- some 1,000 employees,” the newspaper said, citing sources close to the company.
Rosneft has been affected by recent Western sanctions against Russia over its role in the Ukraine crisis, with CEO Igor Sechin’s assets frozen by the United States and potential deals reportedly being halted amid tensions.
The US sanctions appear to be hurting Rosneft’s finances, with the company appealing to the Russian government for help to refinance part of $45 billion of debt it took on as a part of its drive to become the country’s top oil company.
http://www.neurope.eu/article/rosneft-may-cut-2014-oil-output-shed-quarter-staff