Lukoil CEO on Production Cuts, Crude Price, Sanctions

The transcript discusses the challenges of reducing production during harsh winter conditions, particularly in Western Siberia, where temperatures can drop to minus 30-40 Celsius. It outlines the timeline for implementing production cuts, which typically takes three to four months. The speaker hopes these cuts won't be necessary due to current oil prices. Predictions for oil trading prices in the New Year suggest stability in the 60s. The transcript also addresses the uncertainty of future sanctions and the difficulty of switching from dollar-based trading. The strategy is to react to sanctions as they occur, acknowledging the challenges of forecasting and preparing for potential risks.

What is the main challenge of reducing oil production during winter in Western Siberia?

• High temperatures

• Lack of workforce

• Severe cold weather

• Increased demand

How long did it take to meet the production cuts set in 2017?

• Two to three months

• Eight to nine months

• Four to five months

• Six to seven months

What is the company's current focus instead of cutting production volumes?

• Increasing workforce

• Managing inventories

• Expanding market reach

• Improving technology

What is the expected oil trading price around New Year's?

• In the 70s

• In the 60s

• In the 50s

• In the 40s

How does the company plan to handle potential new sanctions?

• By halting all trading activities

• By reacting when sanctions are implemented

• By preparing in advance

• By switching to Euro for trading