Russian crude production was down 0.6% m/m in April as all Russian oil companies except Gazprom Neft reduced oil production, but gas output rose 3.9% y/y
CDU TEK published its oil and gas production data for April that showed total Russian crude output was down 0.6% m/m and continued to be driven by the production cuts at integrated oil companies under the OPEC+ agreement.
The exception was Gazprom Neft, which increased crude output 3.3% m/m. The highest production cuts were shown by Bashneft and Surgutneftegas, at 1.2% and 0.9% m/m, respectively. Lukoil, Rosneft and Tatneft reduced crude output by 0.7% m/m, 0.4% m/m and 0.4% m/m, respectively. Non-integrated oil producers decreased crude production by 1.7% m/m.
Russian gas production was up 3.9% y/y in April. Novatek’s consolidated production increased 14% y/y, driven by the ongoing ramp-up at Yamal LNG. Lukoil, Rosneft and Surgutneftegas reduced gas output 3.4%, 3.1% and 0.9% y/y, respectively.
Gazprom’s gas production was published at 44.2bn cubic metres (bcm) in April, according to Interfax, implying a modest increase of 1.6% y/y.
"We calculate that Russian crude production in April was 1.6% below the October 2018 level (the reference point for the OPEC+ agreement). We note that the highest contribution to the production reduction since October 2018 has been made by Gazprom Neft, which cut output 2.4%, while non-integrated oil companies reduced crude production only 1.0%," VTB Capital analysts said.
"Gazprom’s gas production increased for the eighth month in a row in April, despite weaker gas exports to Europe, which are down 9% YTD. Novatek’s consolidated gas production (including its share in joint ventures) increased 14% y/y, thanks to the contribution from Yamal LNG (+209% y/y) and higher production at Arcticgas (+1.6% y/y)."