Page 8 - FSUOGM Week 04 2022

FSUOGM PERFORMANCE FSUOGM

Russia to ramp up oil output by

5% by Dec 2022: BCS GM

RUSSIA RUSSIA will increase its oil production by 5% will occur by early summer.”
over 2022, analysts at BCS Global Markets (BCS OPEC+ restrictions affected some Russian
Rosneft and Gazprom GM) predicted on January 21, taking advantage producers more than others. Those with signifi-
Neft will drive the of the ending of OPEC+ quotas and emboldened cant greenfield opportunities, particularly Ros-
growth. by the easing of coronavirus restrictions. neft and Gazprom Neft, built up significant idle
Under their current deal, OPEC+ plans to capacity. Others with mature portfolios such as
end production quotas at the end of April, and Lukoil and Surgutneftegaz were less affected.
BCS GM expects the oil cartel to follow through “As 2022 starts, however, idle capacity is
with this plan. becoming scarce and growth will have to be
“The good news for the oil market is that driven by an increase in capex and drilling,” BCS
COVID-19 is fading as a driver,” BCS GM said GM said. “Luckily, this appears to be in the plans,
in a research note. “The Omicron variant may with all of Lukoil, Tatneft, and Rosneft signal-
mark its conversion to endemic status and thus ling that significantly higher upstream activity is
a return to more-or-less normal levels of eco- planned for this year.”
nomic activity and oil demand. Against that The brokerage projects that Russian output
backdrop, it seems likely that OPEC+ will con- will be averaging 11.22mn bpd by December
tinue to raise the group output target by 400,000 2022. Rosneft is due to account for more than
bpd every month this year until all members are half of the growth, while Gazprom Neft will be
effectively at 100% of capacity. For Russia, this the second largest contributor. ™

P8 www. NEWSBASE .com Week 04 26•January•2022