Page 111 - RusRPTNov21

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
CDU TEK has published Russia’s oil and gas production statistics for September 2021.
Russian liquids production was down 0.5% m/m to 43.86mnt in absolute terms. In daily terms, it increased 2.8% m/m to 10.67mmbbl/d. Among integrated oil companies, Bashneft showed the highest m/m growth in crude daily output of 18.3%, followed by Lukoil with 1.3%, respectively. Surgutneftegas and Tatneft increased daily production 0.9% and 0.4% m/m. Rosneft’s (without Bashneft) and Gazprom Neft’s daily output fell -0.3% and -2.1% m/m. Non-integrated companies increased liquids production 9.5% m/m in daily terms to 2.7mmbbl/d.
Russia’s gas output was up 5.8% y/y to 61.05bcm. Gazprom increased production 12.1% y/y. Novatek’s standalone production remained at the same level y/y. Yamal LNG’s gas production grew 8.3% y/y, and Terneftegaz’s 1.9% y/y, while Nortgas and Arcticgas showed declines of 13.8% y/y and 1.5% y/y, respectively. Novatek’s consolidated production was down 2.0% y/y. Rosneft’s gas production increased 18.4% y/y, and at Surgut it grew 2.6% y/y, while for Lukoil it declined 7.3% y/y.
Our View: The data on the production of gas condensate in September is not available yet. However, if we assume it at 106kt/d (July’s level), then the production of oil without gas condensate in September could have been 9.8kbbl/d. This is slightly above the 9.7mmbbl/d OPEC+ quota for Russia. To recap, starting from August, the Russian production quota is set to grow 100kbbl/d on a monthly basis, allowing for further production increases. Gazprom Neft’s production decline relates to maintenance works at the Prirazlomnoye field that started on 16 August and lasted until 11 September.
Gazprom's production increased by 54bcm y/y YTD (16.7%). Generally, gas production in Russia is growing due to the post-crisis recovery of markets and the need to fill gas storages. By 1 November, Gazprom planned to complete the injection of 72.6 bcm of gas into Russian storage facilities (see our Morning Comment of 1 September), and also to continue to fulfil its obligations to foreign customers (taking into account the current low level of occupancy of European underground gas storage facilities, 73.24%, which is 15.81pp below the multi-year average).
According to figures provided by the Central Dispatching Department of
111 RUSSIA Country Report November 2021 www.intellinews.com