By October 2, 2016 Read More →

Russia crude oil output jumps 4% in September to a new record


Igor Sechin, chief executive of Russia’s oil company Rosneft, attends the Russia-ASEAN summit in Sochi, Russia, May 19, 2016. REUTERS/Sergei Karpukhin

Russia oil output stood at 11.11 million b/d in Sept., further rise expected in 2017

By Vladimir Soldatkin

MOSCOW (Reuters) – Russia oil output jumped by almost 4 percent in September from the previous month to 11.11 million b/d, a new post-Soviet record-high, as companies ramped up drilling amid improved oil prices, Energy Ministry data showed on Sunday.

The oil output rose amid the talks between the leading global producers, including Russia, to curb production in order to support oil prices, depressed by oversupply.

Russian Energy Minister Alexander Novak said on Friday that Russia will find mechanisms and instruments needed to freeze oil production should the country reach an agreement with the Organization of the Petroleum Exporting Countries on limiting output.

His comments were aired as OPEC agreed on Wednesday modest oil output cuts in the first such deal since 2008, with the group’s leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices.

In tonnes, Russian oil output reached 45.483 million versus 45.309 million in August. Last month, oil output in million barrels per day stood at 10.71.

The rise was led by world’s top listed oil producer, Rosneft , whose output rose by 2.6 percent month-on-month, as well as Gazprom Neft, which showed a 5.2 percent jump in production last month.

The oil prices have been volatile recently and broke through the $50 per barrel mark last week for the first time since July after the OPEC deal.

It fell to as low as $27.88 in January, spurring talks over global output freeze.

The jump in Russian production comes not only thanks to conventional oil deposits but also as Kremlin oil champions Rosneft and Gazprom Neft are increasing output of hard-to-extract oil, despite Western sanctions on Russian shale projects.

Analysts from Swiss bank UBS forecast a rise of 2.7 percent next year of Russia’s overall oil production.

“Production growth is to be driven by new projects ramp-up and better production management at conventional brownfields (also supported by tax benefits),” they said last month.

Russia’s oil production peaked at 11.41 million bpd in 1988 when it was still part of the former Soviet Union, according to the International Energy Agency.

Russia accounted for 90 percent of Soviet output. Natural gas production in Russia was at 51.33 billion cubic metres (bcm) last month, or 1.71 bcm a day, versus 45.29 bcm in August. (Reporting by Vladimir Soldatkin; Editing by Toby Chopra)


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