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Last Updated : Oct 02, 2018 03:28 PM IST | Source: Reuters

Russian oil output hits post-Soviet high in September

It rose from 11.21 million bpd in August and topped the record high 11.247 million bpd hit in October 2016 which served as Russia's baseline for a deal curbing output alongside other producers which began in January 2017 aimed at stabilising the oil markets.

Russian oil output reached 11.36 million barrels per day (bpd) in September, a post-Soviet high helped by higher production from Rosneft and foreign-led projects, Energy Ministry data showed on Tuesday.

It rose from 11.21 million bpd in August and topped the record high 11.247 million bpd hit in October 2016 which served as Russia's baseline for a deal curbing output alongside other producers which began in January 2017 aimed at stabilising the oil markets.

In tonnes, oil output slipped to 46.478 million from 47.41 million in August as September is a shorter month.

Russian oil output surged as the Organization of the Petroleum Exporting Countries and other large global oil producers led by Russia agreed in June to ease production curbs and stick to the initial levels of output, in line with a 2016 Vienna agreement.

OPEC producers delivered only a limited increase in oil production last month, a Reuters survey has found, as a cut in Iranian shipments due to U.S. sanctions offset higher output in Libya, Saudi Arabia and Angola.

Output increases have been facilitated by stronger oil prices as markets prepare for tighter supply once U.S. sanctions against Iran kick in next month.

Brent crude oil futures have risen by around 20 percent from lows in August to over $85 per barrel, a four-year high.

Russian Energy Minister Alexander Novak has said a price of $70-&80 per barrel is good for both producers and consumers.

According to the Russian Energy Ministry, oil production at Rosneft, the world's largest listed oil company by output, jumped by 1.5 percent from August to almost 4 million bpd.

Russia's overall oil production was also supported by an increase at the Production Sharing Agreement (PSA) projects by more than 20 percent to 1.6 million tonnes (390,000 bpd).

The ministry did not provide a breakdown of data for each PSA project.

Oil output at the Sakhalin-1 project, led by U.S. major ExxonMibiil rose to about 250,000 barrels per day from 200,000, according to ONGC Videsh, which owns a 20 percent stake in the consortium.

Russian oil pipeline exports in September stood at 4.278 million bpd, down from 4.343 million bpd in August.

Russian natural gas production of 57.54 billion cubic metres (bcm) last month, or 1.92 bcm a day, was up from 54.62 bcm in August.

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First Published on Oct 2, 2018 03:25 pm
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