Page 9 - FSUOGM Week 08 2022

FSUOGM PERFORMANCE FSUOGM

Gazprom Neft earnings double on

high prices, production growth

RUSSIA ADJUSTED EBITDA at Russian oil pro- an all-time high.
ducer Gazprom Neft rebounded to RUB986bn Among the highlights of the year was the
Gazprom Neft is on ($12.9bn) in 2021, almost doubling year on year, company’s completion of the Yamal Gas subsea
track for strong output on the back of higher prices and production pipeline, which transports gas from the Novo-
growth. growth. portovskoye field across the Gulf of Ob. Previ-
Revenues were up 53.5% at RUB3.07 tril- ously there was no way to monetise gas from
lion, while net profit soared to RUB503bn from Novoportovskoye, and so it was either used for
RUB117.7bn. Besides higher prices, the com- power generation or flared. Now that gas can
pany also gained from a 5.6% climb in oil and gas be pumped into Russia’s national gas grid. The
production to 2.05mn barrels of oil equivalent pipeline’s capacity is 20bn cubic metres per year.
per year. The company surpassed its long-held Elsewhere on the upstream front, the Zapad-
goal to produce 2mn boepd. Growth was sup- no-Zimnoye field will double its production this
ported by the launch of the Tazovskoye oilfield in year to 4mn tonnes (80,000 barrels per day),
Western Siberia in June last year, increased flow Gazprom Neft, and eventually reach a similar
from oil rims and the launch of a new gas treat- output to Novoportovskoye of around 120,000
ment plant at the Vostochno-Messoyakhskoye bpd, potentially in 2026.
field within Russia’s Arctic Circle. Overall hydrocarbon output should expand
“This was one of the key targets we had set by more than 10% in 2022, Gazprom Neft said,
ourselves as part of the company’s long-term without disclosing a breakdown of liquids and
strategy,. We also see opportunities for further gas.
production growth in 2022 and beyond,” CEO Downstream, Gazprom Neft commissioned
Alexander Dyukov said in a statement. “Recover- a vacuum gasoil hydrocracking unit at the Omsk
ing demand for oil, as well as a swift and effective refinery, which should start commercial opera-
response to the changing market environment, tions this year. Gazprom Neft’s majority-owned
helped us deliver a record performance.” Serbian unit NIS entered into a strategy partner-
Gazprom Neft’s board has recommended ship with petrochemicals producer HIP Petro-
paying RUB40 per ordinary share in dividends hemija, increasing its capital interest in the latter
for the first nine months of 2021, representing from 20.9% to 90%. ™

Week 08 23•February•2022 www. NEWSBASE .com P9