Russia Monitor is a review of the most important events related to Russian internal and external security, as well as its foreign policies.
Date: 31 January 2022 Author: Grzegorz Kuczyński
Gazprom Neft Seeks To Increase Hydrocarbon Output By A Third
Gazprom Neft plans to boost hydrocarbon production by almost a third, the company’s CEO Alexander Dyukov said. Nonetheless, Russia is no longer able to keep pace with the OPEC+ supply deal.
“We can already predict that by 2022, hydrocarbon production will have increased by at least 10 percent. When it comes to 2023–2024, a lot will rely on market conditions, since various things influence the price. However, for the time being, we are assuming that if there are no crises, we will be able to expand production by 5 percent per year. Our next output milestone is 130 million tons in 2025,” Dyukov said. The CEO of Gazprom Neft recalled that in 2021 the company surpassed the figure of 100 million tons of oil equivalent. But Russia is now struggling to keep pace with the OPEC+ deal and increase output. Russia should be adding 100,000 barrels per day each month but its production growth stopped in December. Due to a decline in drilling last year, most analysts polled by Bloomberg News expect Russia’s actual monthly increases can go no higher than 60,000 barrels per month in the first six months of 2022. Russia kept up with a steady production pace throughout 2021 and rebuilt its capability left untapped in the early time of the Covid-19 pandemic. These began to deplete in November. Russia’s biggest producers––Rosneft, Lukoil, and Gazprom Neft––say they use their production capacities to the fullest. So if Gazprom Neft is seeking to attain its output goals, it will only be able to do so by boosting exploitation in fields or purchasing assets from other companies.
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