Author Topic: Russia To Use Record Oil Production as Baseline For OPEC cuts  (Read 919 times)

TradersCom

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Following the historic OPEC agreement Vienna on Wednesday in an effort to finalize that deal. Russia daily oil production rose to an average of 11.21 million bpd in November, a new post-Soviet era high, energy ministry data showed on Friday.

Russian Deputy Energy Minister Kirill Molodtsov announced that Russia plans to use its post-Soviet era record high November oil production as its baseline when it cuts output. Russia has promised to gradually cut output by up to 300,000 barrels per day (bpd) in the first half of 2017 as part of the deal.

Quote
"The peak of daily production for November was 11.231 million barrels, all our agreements will clearly be formed around this figure" Molodtsov told a conference in Moscow.
 

The November production is 500,000 bpd higher than in August, so as we expected and have seen the intervening months have been used by the producers to max their ceiling baseline. Of course this is good business in such a competitive world as oil.  August was when Russia and OPEC reached their preliminary agreement in Algiers to cut production.

This  week's follow-up agreement was the first between OPEC and Russia since 2001 with almost all OPEC members agreeing to cut from October levels. However Russia will use its November-December output levels, Energy Minister Alexander Novak told reporters on Thursday.

While November's production rose only slightly from October, by just 10,000 bpd, ministry data showed it was a post soviet record as we said.

Lukoil and Surgutneftegas raised output in November while production slipped at fields operated by Rosneft, Gazprom Neft and their joint venture Slavneft, preliminary data showed. Rosneft, Gazprom Neft and Lukoil have all launched new fields this year and increased drilling, despite low oil prices. Energy Minister Novak said on Thursday that all Russian companies would contribute to Russia's planned output cut.

Novak also said Azerbaijan, Kazakhstan, Mexico, Oman, Bahrain and other non-OPEC producers could join the deal and that he expected them to jointly match Russia's cut of 300,000 bpd.

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TradersCom

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Russian energy minister spokesman says All companies Russian supported proposals on production cuts

- The proposals were on cutting production
- All companies supported our proposals
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ThePitBoss

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Russia Oil Production +2.5% in 2016
« Reply #2: January 02, 2017, 11:01:32 AM »
Oil production in Russia grew 2.5% in 2016 year on year reaching 547.49 mln tonnes, according to the data provided by the Central Control Administration of the Fuel and Energy Complex.

In December, oil production was 47.4 million tonnes up 3.5% to December 2015.

Novatek led in terms of oil production growth in Russia last year with the 37.6% growth year on year, its oil production grew to 12.46 mln tonnes.
Gazprom Neft produced 57.79 million tonnes of oil, 6.7% more than in previous year.
Bashneft oil production rose 6.3%, 20.8 mln tonnes
Tatneft  rose 5.3%, 28.69 mln tonnes.
Rosneft increased oil production by 0.5% to reach 209.96 mln tonnes
Surgutneftegaz rose 0.4% to reach 61.85 mln tonnes.

Lukoil actually reduced oil production by 2.8% to 83.57 mln tonnes,
RussNeft cut by 5.2% to 7 mln tonnes
Independent Oil Company Cut by 1.3% to 2.3 mln tonnes.

Source TASS
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