Rosneft Q2 Gas Output Rises 3%
Rosneft has had to cut its oil output to comply with Opec production cuts, to which Russia signed up last November; however its acquisition of Bashneft saw an overall increase in liquids output.
The state-controlled company also reinforced its leading position as a gas producer, maintaining its lead over independent gas producer Novatek.
Rosneft produced 5.7mn barrels of oil equivalent/day (70mn metric tons) in Q2 and 5.74mn boe/d in the first half, up by 10.2% compared with 2016 thanks to acquisitions and new projects development.
Gas production reached 34.2bn m³ in the first half (Q1: 17.21bn m³; Q2:16.99bn m³), rising by 2.9% y/y -- ahead of Novatek's 31bn m3 production and total sales of 33.1bn m³ in 1H2017.
Rosneft's growth in gas output came from two wells in operation at the northern tip of Chayvo field on Sakhalin Island in 2016; reaching the design capacity at Rospan's Novo-Urengoy gas and condensate treatment plant in August 2016; successfully launching three new wells at the Tyumen suite of Yem-Yegovskoye field in 1Q 2017; growing gas deliveries from Van-Yeganskoye field; and new wells at the Severo-Varyeganskoe field.
Rospan production facilities construction for a gas processing plant is under way at the Vostochno-Urengoiski license area; 5 compressor units assembled at the booster compressor station, 7 gas turbine facilities assembled at the gas turbine power plant of Vostochno-Urengoysky licence area; construction of the rail loading terminal at Korotchaevo station, trunk and intra field pipelines and power supply facilities are in progress.
William Powell