Page 104 - RusRPTAug21

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
Oil and gas condensate production in Russia decreased in the first half of the year by 3.7% in annual terms to 254.93mn tons, according to the Central Dispatch Office of the Fuel and Energy Complex. The average daily production was 10.32mn barrels, Russian media reported.
In June, Russia produced 42.64mn tons of oil with gas condensate (+11.7% in annual terms). The average daily production was 10.42mn barrels.
Rosneft produced 86.73mn tons of oil in the first half of the year (14.73mn tons in June), Lukoil – 36.42mn tons (6.17mn tons), Surgutneftegaz – 26.69mn tons (4.46mn tons), Gazprom Neft – 19.28mn tons (3.17mn tons), Tatneft – 13.43mn tons (2.29mn tons), Bashneft – 5.86mn tons (1.06mn tons), Slavneft – 4.19mn tons (783.66 thousand tons), NOVATEK – 4.13mn tons (671.7 thousand tons), Russneft – 3.19mn tons (561.34 thousand tons).
Other companies, including Gazprom and joint ventures with foreign participants, produced 42.63mn tons of oil and gas condensate in the first half of the year (in June – 6.84mn tons), PSA operators – 8.72mn tons (in June – 1.29mn tons).
Meanwhile, gas production in Russia increased in the first half of the year by 12.6% in annual terms to 384.09bn cubic meters. m.
In June, the country produced 8.43bn cubic meters of gas (+ 21.7%).
Production statistics for Gazprom are included in the production volume of “other subsoil users”, which produced 279.99bn cubic meters in the first half of the year meters of gas (in June – 41.59bn cubic meters).
OPEC+ has agreed to increase crude oil output by 400 kbpd per month until May 2022, Interfax reports. The benchmark levels for production will be raised by 500 kbpd for Russia and Saudi Arabia, 300 kbpd for the UAE, 150 kbpd for Iraq and 160 kbpd for Kuwait (1.3mn bpd in total). The deal was also extended until the end of next year (from April). Russian Energy Minister Alexander Novak said the agreement will allow Russia to increase output by 100 kbpd on a monthly basis and reach pre-deal production levels by May 2022. The new parameters of the deal give Russian companies some modest additional room to raise output. We think that overall Russian production could increase by 2-3% q/q in both 3Q21 and 4Q21. Overall, we see Russian crude oil and gas condensate production rising by 3% y/y to 10.54mn bpd this year and by 8% y/y to 11.44mn bpd next year (versus 11.25mn bpd in 2019). We assume that the production hikes will be coordinated by the Energy Ministry and will be on a pro rata basis at the company level, in line with the approach
104 RUSSIA Country Report August 2021 www.intellinews.com