Lukoil’s Chief Financial Officer, Alexander Matytsyn, also told a conference call with investors that the company, Russia’s second-largest oil producer, still expected global oil prices to exceed US$50/bbl in 1-1/2 to 2 years.
On Wednesday the company reported a 1Q20 net loss of 46 billion roubles (US$669 million), hurt by lower oil prices, a weaker rouble currency and asset impairment losses.
The company had to cut its oil output in Russia by 310 000 bpd in May from 1Q20 due to the pact on output curbs agreed by OPEC+.
A company official told the conference call that Lukoil fully achieved its output cuts goal in May.
He added that Lukoil would quickly be able to restore production and mothballed wells once the global output reduction deal is over.
Pavel Zhdanov, a company vice president, also said Lukoil’s natural gas output in Uzbekistan could halve to 7 billion m3 this year on the back of a slump in demand in China.
He also said it had already made a return of some US$8 billion on investments in projects in Uzbekistan, out of the US$9.9 billion it has invested there.
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