Page 104 - RusRPTFeb24

9.0 Industry & Sectors 9.1 Sector news
9.1.1a Oil & gas sector results
OPEC also noted that Russia’s oil production in November decreased by 300,000 barrels per day (bpd) to 9.2 mln bpd. At the same time, production of liquid hydrocarbons decreased by 80,000 bpd, to 10.4 mln bpd. In October 2023, according to OPEC, Russia produced 9.5 mln bpd bpd of oil.
In December, the Russian Ministry of Energy predicted oil production in the country at the end of 2023 at 523 mln tons or slightly less, which is about 2% lower than last year’s level. A number of OPEC+ countries, including Russia and Saudi Arabia, are voluntarily reducing oil production by a total of 1.66 mln bpd from the spring of 2023 to the end of 2024. As part of these agreements, Russia is reducing production by 500,000 bpd from the February average. At the same time, Russia is reducing supplies to world markets: in August by 500,000 bpd, and from September until the end of the year - by 300,000 bpd. At the end of November, some OPEC+ participants decided on additional voluntary cuts for the Q1 of 2024, the total volume of which will be 2.2 mln barrels per day. In the Q1 of 2024, Russia will reduce oil supplies by 500,000 bpd.
OPEC reported that Russia’s production of liquid hydrocarbons slipped by 2%, or by 250,000 barrels per day, in 2023 to 10.78 mln barrels per day. The petroleum producers’ cartel takes all announcements of output cuts within OPEC+ made earlier into consideration.
That said, the country’s production of liquid hydrocarbons is expected to remain roughly at the same level of around 10.77 mln barrels per day in 2024. Additional liquids production is expected to be offset by declines at mature fields, according to the report.
In 2025, Russian liquids production is forecast to increase marginally by 30,000 barrels per day compared with the previous year, OPEC said. "In addition to project ramp-ups at several oil fields, there will be start-ups by Lukoil, Russneft, Sheshmaoil, Gazprom, Rosneft and Sintek-Oil," the report said.
Russia's oil drilling continues to break records despite Western sanctions. Russia's oil drilling industry is on track to set record highs for the second year in a row, raising doubts on the ability of Western sanctions to
104 RUSSIA Country Report February 2024 www.intellinews.com