Page 98 - RusRPTOct21

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
Russian daily liquids production was down 0.3% m/m in August – daily gas production rose 5.7% year-on-year. CDU TEK has published Russia’s oil and gas production statistics for August 2021. Russian liquids production decreased 0.3% m/m to 44.1mnt, while in daily terms it decreased the same 0.3% m/m to 10.4mmbbl/d.
Among integrated oil companies,bashneft and Tatneft showed the highest m/m growth in crude output, at 13.6% and 2%, respectively. Surgutneftegas, Lukoil and Rosneft (withoutashneft) increased production 1.5%, 0.9% and 1.0% m/m. Gazprom Neft’s output fell 4.2% m/m. Non-integrated companies also cut liquids production 4.4% m/m in daily terms to 2.5mmbbl/d.
Russia’s gas production was up 14.4% y/y. Gazprom increased production 11% y/y. Novatek’s standalone production decreased 8.9% y/y. Yamal LNG’s gas production dropped 19.8% y/y and Nortgas’s 19.1% y/y. Production at Terneftegaz and Arcticgas also declined 2.4% y/y and 3.7% y/y, respectively. Novatek’s consolidated production was down 6.7% y/y. Rosneft’s gas production increased 17.6% y/y.
The data on the production of gas condensate in August is not available yet. However, if we assume it at 107kt/d (May’s level), then the production of oil without gas condensate in August could have been 9.66kbbl/d. This broadly in line with the 9.6mmbbl/d OPEC+ quota for Russia. To recap,ack 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.
After the updated OPEC+ deal, the reduction in oil production with condensate might look a little surprising. However, we think that this is mainly due to a drop in condensate production at gas condensate plants owned by gas companies. The Sakhalin-2 liquefied natural gas (LNG) plant, as well as one of the Yamal LNG plant lines, did not work for almost the entire month of August, which likely led to a decrease in condensate production. Gazprom’s accident at the Urengoy gas condensate pre-transportation facility also had an effect on total condensate production in August, weelieve. We note that, at the same time, oil companies increased the production of oil with condensate 1.5%.
98 RUSSIA Country Report October 2021 www.intellinews.com