Page 117 - RusRPTJun21

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
CDU TEK has published the Russian oil and gas production data for April 2021.
Russian liquids production increased 2.1% m/m to 1,427kt/d (or 10.417mbbl/d). All integrated companies except Gazprom Neft increased their liquids production last month. Bashneft showed the highest growth, at 27.6% m/m, followed by Tatneft (+2.4% m/m), Rosneft (+2.3% m/m), Surgutneftegas (+1.5% m/m) and Lukoil (0.8% m/m). Liquids output at Gazprom Neft was down 3.1% m/m. Non-integrated oil companies raised production 2.0% m/m.
Overall, Russian gas production increased 16.2% y/y. Gazprom raised its gas output 25.1% y/y, according to Interfax. Novatek’s standalone production was up 5.4% y/y. Its Arcticgas, Yamal LNG and Nortgas joint ventures cut their output 0.4% y/y, 2.6% y/y and 15.5% y/y, respectively, while Terneftegas added 5.0% y/y. As a result, Novatek’s consolidated production was up 4.7% y/y.
Given that the gas condensate data for April has yet to be made available on the back of the flattish m/m condensate output last month (107.5 kt/d), we calculate that Russian oil companies might have produced some 1,320kt/d of oil, or 9.632mmbbl/d under the 7.3x conversion coefficient. As a result, Russian crude output rose 211kbbl/d m/m (it was 9.421mmbbl/d in March), outpacing the growth in the production quota in April (130 kbbl/d). The Russian quota under OPEC+ in April was 9.375mmbbl/d (see our Morning Comment of 5 March).
As for integrated oil companies, we note that Bashneft has been showing the weakest liquids output dynamics in 2021 so far (down 37.6% YTD compared with 2020), despite the 27.6% m/m increase in April. On the other hand, although Gazprom Neft demonstrated a weaker operating performance in the upstream in April compared with peers, YTD its liquids output is down only 2.7% y/y, which the highest level among integrated oils.
Oil production
Russia’s oil and gas condensate production decreased by 7.8% in April 2021 year-on-year to 42.8mn tonnes. Russia is reducing crude production as part of the OPEC+ for stabilization of the market. Meanwhile it was able to boost output by 130,000 barrels per day in February-April.
117 RUSSIA Country Report June 2021 www.intellinews.com