Page 98 - RusRPTJun19

Russian crude production in April was 1.6% below the October 2018 level (the reference point for the OPEC+ agreement). We note that the highest contribution to the production reduction since October 2018 has been made by Gazprom Neft, which cut output 2.4%, while non-integrated oil companies reduced crude production only 1.0%.
Gazprom’s gas production increased for the eighth month in a row in April, despite weaker gas exports to Europe, which are down 9% YTD. Novatek’s consolidated gas production (including its share in joint ventures) increased 14% y/y, thanks to the contribution from Yamal LNG (+209% y/y) and higher production at Arcticgas (+1.6% y/y).
The transit of Russian oil via Druzhba pipeline has not yet been resumed due to persisting technical problems in Poland and Germany, Vedomosti daily and Reuters reported on May 21 citing unnamed market sources. While Belarus is ready to start pumping oil on both lines of the pipeline in the direction of Poland and Ukraine, reportedly Poland is blocking the transit before the compensation for supplies of contaminated Russian are discussed. In the beginning of May, uncertainty over the quantity and quality of Russian oil supplies snowballed, after in April Belarus, Ukraine and some Central European countries and Germany suspended oil imports via the pipeline after
98 RUSSIA Country Report June 2019 www.intellinews.com