Rosneft, the world’s largest oil producer with operations in the stock market, has the opportunity to increase its market share if there is a shortage of global supplies of crude oil, the executive president of the Russian company, Igor Sechin, said on Thursday.
Rosneft, which has BP and Qatar among its shareholders, represents 40% of Russia’s total oil production, and is key for Moscow to keep its supply cut commitments agreed with OPEC and other nations outside the cartel.
“Today, the market is very unified in the expectations of a structural oil deficit in the next 10 years, as the increase in demand occurs along with a drop in production,” Sechin said at a meeting of shareholders of Rosneft.
Sechin, the most influential executive in the Russian oil industry and close ally of President Vladimir Putin, said that by 2025 it is estimated that there will be an oil deficit of between 700 and 750 million tons per year.
He stated that an additional global annual production of 15 million barrels per day (bpd) would be needed to avoid a global shortage.
The OPEC countries and allied nations are meeting this week to discuss a possible increase in production quotas.
“For Rosneft (…) a situation like this creates a unique opportunity to increase our market share,” said Sechin.
The executive did not specify how much Rosneft was willing to raise its production if Russia agrees with OPEC to moderate the agreement to cut supplies from July 1.