Page 91 - RusRPTDec19

9.0​ Industry & Sectors 9.1 ​Sector news
9.1.1a​ Oil & gas sector results
CDU TEK published its oil and gas production data for November. Total crude oil output in Russia was nearly flat (up 0.1%m/m) at 11.2mmbbl/d. Notably, Bashneft increased its output 0.7% m/m, while Gazprom Neft cut production 1.8% m/m. At other producers, output was virtually the same as in October.
Russian gas production increased 2.2% y/y to 2.1bcm/d. Gazprom increased its output 3.3% y/y, while Novatek's production (including JVs) declined 0.2% y/y. Surgutneftegas and Lukoil raised their gas output 3.4% y/y and 1.6% y/y, respectively. Rosneft's gas production declined 1.1% y/y.
Crude production in November was 1.5% lower than in October 2018 (the reference point for pre-OPEC+ levels). As a reminder, Russia agreed to reduce oil output 228kbbl/d from the October 2018 levels in 2019. The average daily oil production for 11mo19 was 0.5% below the OPEC+ target, we estimate, which leaves some room for output increases in December.
Gazprom Neft remains the most affected by OPEC+ restrictions: its monthly output was down 6.6% relative to October 2018 levels, we calculate. We expect to hear from the company about why there was such a notable reduction in output last month.
Gazprom's natural gas production was up only 3.3% y/y, although the company's November gas exports grew 9.5% y/y, according to Interfax. Novatek's overall gas output declined on a y/y basis. However, we note that daily production at Yamal LNG and Arcticgas rose 29.6% y/y and 3.1% y/y, respectively.
91​ RUSSIA Country Report​ December 2019 ​ ​www.intellinews.com