Page 116 - RusRPTSept21

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 July 2021. Russian liquids production was up 3.8% m/m to 44.2mnt. In daily terms, it increased 0.4% m/m to 10.42mmbbl/d. Most integrated oils increased their output m/m: Gazprom Neft (by 2.9% m/m in daily terms), Surgutneftegas (+1.5% m/m), Rosneft (+0.8% m/m), Lukoil (+0.7% m/m) and Tatneft (+0.6% m/m). Bashneft was an exception, as its daily liquids production went down 6.0% m/m. Non-integrated oils’ production was down 1.0% m/m.
Russia’s gas output was up 14.4% y/y. Gazprom increased production 19.4% y/y. Novatek’s standalone production rose 11.1% y/y. Yamal LNG’s gas production grew 9.1% y/y, and Terneftegaz’s 7.8% y/y, while Nortgas and Arcticgas showed declines of 7.7% y/y and 6.8% y/y, respectively. Novatek’s consolidated production was thus up 6.9% y/y. Rosneft’s gas production increased 14.5% y/y, and at Surgut it grew 5.2% y/y, while for Lukoil it declined 10.1% y/y.
No data on the production of gas condensate in July is available yet. However, if we assume it at 107kt/d (May’s level), then the production of oil without gas condensate in July could have been 9.6mmbbl/d, which is comparable with the 9.5mmbbl/d OPEC+ production quota for Russia in July. To recap, back in April, OPEC+ decided to increase total oil production 350kbbl/d in both May and June, and then 440kbbl/d in July. Russia was to increase its production to a combined amount of 114kbbl/d over May-July. From August, the Russian production quota is set to grow 100kbbl/d on a monthly basis, allowing for further production increases.
Continued increases in Gazprom’s gas production do not come as a surprise, considering the need to replenish gas stocks in Gazprom’s underground storages domestically and in Europe. We expect elevated gas production to persist in 2H21 for the same reason.
116 RUSSIA Country Report September 2021 www.intellinews.com