The boss of Russian state-owned energy giant Gazprom hopes reports of a deal between Russia and Saudi Arabia to freeze oil production are true.

Speaking exclusively to the ABC's The Business, Gazprom deputy chairman Alexander Medvedev said he had only heard news reports of the deal between the two governments.

He said he knew intense talks were being held ahead of the Organization of the Petroleum Exporting Countries (OPEC) meeting this weekend in Doha, Qatar.

"If it is so and it is not an exaggeration then I believe that it is very important for stabilisation for the oil market," he told the program.

He said prices, at $US30 and $US40 a barrel, were causing significant divestment in the industry that would eventually create major issues for producers and consumers.

"Divestment ... will only lead to skyrocketing prices, which is not in the interests of neither the customer nor for ourselves," Mr Medvedev said.

Crude oil prices jumped overnight following news reports that the two oil producers had reached an agreement to freeze oil production.

Gazprom is Russia's second most valuable company, beaten only by fellow energy giant Rozneft, but both have both been under pressure as rising global supplies and decreased demand sent oil prices spiralling down.

Iran to join OPEC talks for first time since sanctions were lifted

The reported deal between Russia and Saudi Arabia comes ahead of the meeting of OPEC member countries in Doha this weekend.

Russia is not an OPEC member but Mr Medvedev said he believed the meeting could signal the bottoming of oil prices, as all member countries have an interest in lifting prices.

Sorry, this video has expired Extended interview with Alexander Medvedev ( Ticky Fullerton )

"The risk of deficit is becoming real and if they believe in market forces something should be changed," he said.

Iran will participate in OPEC talks for the first time since the US lifted sanctions on the oil-rich nation.

Mr Medvedev suggested Iran would be voting in favour of cutting production.

"Russia and Iran has a good potential to co-operate in oil and gas and I believe that Iran will take account of the situation in the world oil market because obviously you could get more money if there is less volume," he said.

Mr Medvedev acknowledged belief in the market that a supply freeze agreement could fail to lift prices.

"It could happen because there are some other factors on price formation," he said.