03-03-2018

Russian oil extraction holds steady, small producers cut output

Russian oil extraction stood at 10.95 million barrels per day (bpd) in February and has been steady for the past three months as a decline at small producers has been offset by a ramp-up in production by majors, Energy Ministry data showed on Friday.

Russian Energy Minister Alexander Novak said on Thursday that Russia was in full compliance with its obligations under a global deal to cut oil production.

He said Russia cut oil production by 300,400 bpd last month. Under the OPEC-led output pact Russia promised to reduce its output by 300,000 bpd from 11.247 million bpd — the record high reached in October 2016.

In tonnes, oil output reached 41.836 million versus 46.306 million in January.

The data shows that Russia’s leading oil producers Rosneft and Lukoil both increased output by 0.1 percent last month from January.

Gazprom Neft, the oil arm of Russian gas giant Gazprom,boosted output month on month by 1.7 percent thanks to active development of new oilfields.

So-called small producers cut output by a combined 0.5 percent last month to 6.152 million tonnes (1.61 million bpd).

The Organization of the Petroleum Exporting Countries and other large oil producers led by Russia agreed to cut combined oil output by almost 1.8 million bpd from the start of last year to the end of this year to prop up oil prices and reduce global stockpiles.

OPEC oil output fell in February to a 10-month low as the United Arab Emirates joined other Gulf members in over-delivering on the supply cuts, a Reuters survey found, pushing compliance with the deal to its highest yet.

Novak said on Thursday that the rebalancing of global oil market was “going well”.

Russian production of natural gas was at 59.23 billion cubic metres (bcm) last month, or 2.12 bcm a day, against 65.35 bcm in January, the data shows.

Source: Reuters

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