* Russia needs to cut oil output to 17 yr-low
* Companies plan cuts at mature fields - sources
* Moscow's cuts are part of global oil deal
By Olesya Astakhova and Vladimir Soldatkin
MOSCOW, April 15 (Reuters) - Russian oil companies are
examining which wells they will cork, looking mainly at mature
fields where production was falling anyway and as Moscow needs
to deliver its biggest output cut ever to comply with the new
global supply deal, sources said.
The Organization of the Petroleum Exporting Countries and
other oil nations including Russia, the group known as OPEC+,
agreed to their deepest oil cut ever - 10 million barrels per
day (bpd) - from May in the face of collapsing demand.
Russia currently pumps 11.24 million bpd and needs to cut it
down to 8.5 million bpd - its lowest since 2003 - from May 1,
according to the deal's terms. It has never cut its output that
deeply and quickly.
Renaissance Capital estimated in a note this week that cuts
may range from 630,000 bpd for Rosneft ROSN.MM as the
country's top producer to 270,000 bpd and 200,000 bpd for Lukoil
LKOH.MM and Surgutneftegaz SNGS.MM who follow next.
Moscow's biggest cut under the expired OPEC+ deal was
300,000 bpd. Last month, it refused to double its cuts to
600,000 bpd, saying it would not help demand and would be
technically challenging for Russia to restore wells.
Companies will need to pick assets carefully as freezing
temperatures, notably in eastern Siberia and in the north, mean
that if a well is stopped, the oil pipelines will freeze too,
and some production facilities may be lost forever.
"Oil companies are calling non-stop as crazy asking how and
where cuts could be done," said a consultant who works closely
with producers.
The energy ministry, which was holding online meetings with
the oil companies on Monday and Tuesday, is yet to say how the
cuts would be allocated. The ministry did not reply to a Reuters
request for a comment.
Companies will, however, look to target mature fields, where
investments have been largely returned and where oil production
was falling anyway, two sources at different oil companies said.
"It would require more costs to restart greenfields," the
first source said.
INEVITABILITY
An energy industry source and a source close to the
government said that Moscow was preparing to cut its production
by around 2 million bpd anyway, as demand is weak in its core
market in Europe where millions are stuck at home.
"Everyone understood the risks - if no deal, a half of oil
output would have had to be cut anyway," the source close to the
government said.
The first oil company employee said that allocations are to
be agreed with the energy ministry this week. The energy
Minister Alexander Novak said on Monday that the companies
backed the cuts after their online meeting.
Rosneft, which accounts for over 40% of country's total oil
output, declined to comment. The second-largest oil producer
Lukoil said it has a plan but declined to disclose it.
Gazprom Neft SIBN.MM , Surgutneftegaz SNGS.MM and Tatneft
TATF.MM did not reply to requests for comments. Tatneft Chief
Executive Nail Maganov said this week that his company would
deliver on agreed cuts without disclosing quotas.
Alexander Dyukov, head of Gazprom Neft, told Kommersant
daily that in terms of current daily volumes, his company has
achieved its strategic goal to pump 2 million bpd ahead of the
cuts but this will be reduced due to the global deal.