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UPDATE 1-Russia's Gazprom Neft urges OPEC to raise oil output

Fri, 14th Jun 2019 12:15

* Gazprom Neft CEO: oil prices at $55-65/bbl acceptable

* Gazprom Neft: OPEC+ deal should stay, output should rise

* Gazprom Neft aims to up exposure to Iraq

* CEO of Gazprom Neft says company plans to boost dividends(Adds detail, quotes)

ST PETERSBURG, June 14 (Reuters) - OPEC and non-OPECproducers should raise oil production starting from the secondhalf of the year to balance the market and keep prices at anacceptable level, Alexander Dyukov, the head of Russia's GazpromNeft, said on Friday.

An oil price at $55-$65 per barrel is "acceptable" forRussian producers, he told reporters, adding that the company isready to quickly restore its oil output, curbed by a globalagreement.

His comments add to the pressure on the Russian EnergyMinister Alexander Novak, who said on Monday that he could notrule out a scenario in which oil prices could fall to $30 perbarrel if the global oil deal was not extended.

The Organization of the Petroleum Exporting Countries andother large oil producing countries led by Russia - known asOPEC+ - agreed to withhold their combined oil output by 1.2million barrels per day (bpd) from Jan.1 and until the end ofJune.

Their next meeting is due to take place in Vienna at the endof June or early July. Saudi Arabia, the OPEC kingpin, has saidthat all the participants in the agreement except Russia haveagreed to extend it until the end of this year.

"I think some quotas increase for the countries, involved inthe OPEC+ agreement, would be acceptable," Dyukov said.

Gazprom Neft could restore production to 1 million tonnesannually, or 20,000 barrels per day, and add another 1 milliontonnes by the end of the year.

Gazprom Neft, the oil business of gas giant Gazprom, is Russia's fastest-growing oil producer in terms ofoutput.

Speaking at the annual general meeting earlier on Friday,Dyukov also said that the company plans to boost its dividendpayout to 50% of net income in the medium term.

Dyukov said the company was interested in expanding in Iraq,where it is developing the Badra field, adding that it islooking at the Mansuriyah gas field near the Iranian border.

Iraq's government is expected to launch a tender to developthe field this year.

Gazprom Neft said earlier this month that it would set up ajoint venture with Shell to develop an oil field inYamal peninsula, estimated to hold reserves of around 1.1billion tonnes of oil.

Vadim Yakovlev, Gazprom Neft's first deputy CEO, said itsinitial investment is seen at 100 billion roubles, with plans toincrease it.(Reporting by Vladimir SoldatkinEditing by Andrey Kuzmin)

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