Zarubezhneft considering various options for cutting output in Russia following introduction of price cap, right down to temporary suspension

MOSCOW. Oct 12 (Interfax) - Zarubezhneft is considering various options for cutting output in Russia following the introduction of the price cap, right up to temporary suspension, the company's CEO, Sergei Kudryashov, said during a session at Russian Energy Week 2022.

"We are taking December 5 [the date when the European Union's price cap on transporting Russian oil comes into force] seriously, very seriously. Several options for the development of events are ready for the worst options. We have calculated that we do not have domestic refining in Russia, and we do not have access to the Eastern Siberia-Pacific Ocean (ESPO) pipeline, as other companies do have; therefore, we are looking at a 100% shutdown for our Russian assets. We understand what needs to be done later in order to restart even within two weeks," Kudryashov said, noting that even suspending production by 70% is not critical for the company, given the available technologies.

"We are working on these scenarios, and we are ready. If anyone thinks that Russia would not be able to limit production in winter and would sell at any price, then it is probably better to give up this idea," Kudryashov said.