Rosneft CEO Igor Sechin has said his company will not participate in an OPEC production freeze deal.
Sechin told Reuters on Monday that Russia’s Rosneft will not cut production as part of a planned OPEC agreement.
“Why should we do it?,” Sechin told Reuters during the World Energy Conference in Istanbul.
Russian president Vladimir Putin said on Monday that Russia was prepared to join the OPEC deal but he did not provide additional details, Reuters said.
Sechin told Reuters that Rosneft plans to boost its oil production above the 4.1 million barrels per day it pumped last year.
Sechin added that he believes U.S. shale producers have the most to gain from an OPEC production deal.
“The Americans want it most ($50 per barrel) as the shale oil projects become profitable with such a price. And $60 (per barrel) will result in more shale oil projects,” Sechin told Reuters.
OPEC announced plans to cap production at between 32.5 million and 33 million barrels per day during an informal meeting earlier this month.
OPEC production rose to an all-time high of 33.6 million barrels per day in September, according to the International Energy Agency.
OPEC Secretary General Mohammed Barkindo told Reuters on Tuesday that a production cap would likely be in place for six months and then reviewed.
Iran, Nigeria and Libya are expected to be exempt from production cuts.
Iran has repeatedly asserted that it will not consider trimming production until it’s pumping more than 4 million barrels per day.
OPEC members hope that larger producers from outside the group, including Russia and Mexico, will participate in the proposed production cuts.
Details about how many barrels each of the group’s 14 members will cut and when those cuts will go into effect have not been disclosed yet.
The IEA warned that even with “tentative signs that bulging inventories are starting to decline” the agency’s outlook suggests that, if the market is “left to its own devices,” the current glut will persist into the first half of 2017.
“If OPEC sticks to its new target, the market’s rebalancing could come faster,” the IEA added.