Page 80 - RusRPTMar20

9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1a​ Oil & gas sector results
The production of crude oil and gas condensate in January increased 0.2% m/m to 11,237kbbl/d, according to CDU TEK​. Among integrated oil companies, Gazprom Neft, Rosneft (without Bashneft) and Bashneft increased their production 2.2% m/m, 0.2% m/m and 0.6% m/m, respectively, while Lukoil, Surgutneftegas and Tatneft cut production 0.1% m/m, 0.6% m/m and 1.2% m/m, respectively.
Russian gas production declined 2.8% y/y to 2.1bcm/d. Gazprom’s output was down 6.5% y/y, while Novatek's production increased 4.3% y/y. Surgutneftegas, Lukoil and Rosneft raised their gas output 2.1% y/y, 4.0% y/y and 0.5% y/y, respectively.
Analysts estimate that crude and condensate production in January was 1.2% below that in October 2018 (the reference point for the OPEC+ production cut deal), or 134kbbl/d. We remind that Russia agreed to reduce oil output 298kbbl/d from the October 2018 levels in 2019 (this production quota excludes gas condensate).
Russian natural gas production fell 2.8% y/y as Gazprom reduced gas output by 6.5% y/y pressured by the warm weather both in Russian and Europe. Gazprom export was also affected falling from 17.55bcm in 2019 to 13.3bcm 2020 (-24% y/y), according to Interfax. Novatek’s production added 4.3% thanks to Yamal LNG’s production surge of 34.2% y/y.
80​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com