OPEC says join the club, Russia not interested – Rosneft CEO

Russia has no interest in joining the Organization of the Petroleum Exporting Countries (OPEC) according to Igor Sechin, the CEO of Russian oil major Rosneft. “OPEC has lost its influence as a key market regulator, no interest for Russia to join,” he said.

Unlike OPEC countries, the Russian oil industry is less state-regulated, said Sechin, adding that due to climatic peculiarities, Russia cannot quickly adjust oil production.

“The Russian government, understanding the differences in the conditions of production and property rights, agrees to observer status in OPEC, but cannot accede as a full-time member,” TASS quotes him as saying at the FT commodities conference in Singapore.

Sechin also accused OPEC of not meeting its own production quotas.

READ MORE: Oil prices will not fall lower – OPEC chief

“OPEC countries are currently exceeding their own quota [30 million barrels per day], according to various estimates, by 1.5 million to 2.5 million barrels per day. If the quota was met, then, the global oil market would be balanced, which would positively affect crude prices," he said.

Speaking about Iran returning to the world market, "fears are exaggerated," because the country needs to have "hundreds of billions of dollars" invested for a significant increase in production, said Sechin.