Page 83 - RusRPTJan22

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
CDU TEK has published Russia’s oil and gas production statistics for November 2021.
Russian liquids production was down 2.8% m/m to 44.56mnt in absolute terms. In daily terms, it increased 0.3% m/m to 10.8mnbbl/d. Among integrated oil companies, Gazprom Neft showed the highest m/m growth in crude daily output of 3%, followed by Lukoil with 1.5%. Surgutneftegas also increased daily production 1.2% m/m. Tatneft’s and Bashneft’s daily output was flat m/m. Rosneft’s daily production was 5.8% lower m/m. Non-integrated companies increased liquids production 7.1% m/m in daily terms to 2.96mbbl/d.
Russia’s gas output was up 5% y/y to 66.1bcm. Gazprom increased production 5.4% y/y to 45bcm. Novatek’s standalone production rose 3.2% y/y. Yamal LNG’s gas production grew 8.9% y/y, and Terneftegaz’s 5.8% y/y, while Nortgas and Arcticgas showed declines of 14.0% y/y and 4.4% y/y, respectively. Novatek’s consolidated production was up 0.3% y/y. Rosneft’s gas production increased 10.8% y/y. At Surgutneftegas, production declined a marginal 0.7% y/y, while at Lukoil it was down 4.8% y/y.
“The data on the production of gas condensate in November is not available yet. If we assume it at 105kt/d (September’s level), then the production of oil without gas condensate in November could have been some 10.0mmbbl/d (although condensate output might have grown m/m on the back of 4.8% higher gas production). Thus, we believe that crude oil output in November was broadly in line with the 9.9mnbbl/d Russian OPEC+ quota. In December, the production of OPEC+ is to grow an additional 400kbbl/d monthly, while Russia’s quota is to increase 100kbbl/d monthly. This schedule might result in a liquids output increase of 2% y/y to 10.5mnbbl/d, on average, in 2021 (523mnt), we calculate,” VTB Capital (VTBC) said in a note.
Gazprom was producing at 1.5bcm/d in November, which we think is close to maximum capacity. The company highlighted the increased gas demand in Russia and its intention to fill its European storages by the year-end. We expect that, against the background of fulfilling contract obligations and building up gas stocks in storages, the company will continue to increase gas production in the remaining month of 2021. Rosneft is likely to continue growing production on the back of Rospan’s ramp up.
83 RUSSIA Country Report January 2022 www.intellinews.com