LUKOIL Reports Preliminary Operating Data for the First Quarter of 2019
In the first quarter of 2019 LUKOIL Group’s average hydrocarbon production excluding the West Qurna-2 project was 2,379 thousand boe per day, which is 4.1% higher year-on-year and 0.3% higher quarter-on-quarter. The increase was mainly driven by the development of gas projects in Uzbekistan.
Hydrocarbon production, thousand boe per day
| 1Q 2019 | 4Q 2018 | 1Q 2019 | 1Q 2018 | |
|---|---|---|---|---|
| 2,379 | 2,371 | Total (excluding the West Qurna-2 project) | 2,379 | 2,286 |
Oil production excluding the West Qurna-2 project in the first quarter of 2019 was 21.2 million tonnes, which is 1.5% higher year-on-year and 0.5% lower quarter-on-quarter in average daily terms. LUKOIL Group’s oil production volumes and dynamics are mainly defined by the external limitations of Russian companies’ production volumes.
Oil production, thousand tonnes
| 1Q 2019 | 4Q 2018 | 1Q 2019 | 1Q 2018 | |
|---|---|---|---|---|
| 21,244 | 21,832 | Total (excluding the West Qurna-2 project) | 21,244 | 20,926 |
| 20,328 | 20,922 | Russia | 20,328 | 20,005 |
| 20,177 | 20,763 | Subsidiaries | 20,177 | 19,847 |
| 151 | 159 | Share in affiliates | 151 | 158 |
| 916 | 910 | Outside of Russia | 916 | 921 |
| 484 | 497 | Subsidiaries | 484 | 490 |
| 432 | 413 | Share in affiliates | 432 | 431 |
| 390 | 276 | Compensation oil from the West Qurna-2 project | 390 | 451 |
| 21,634 | 22,108 | Total | 21,634 | 21,377 |
Active development of the priority projects continued. In particular, in the first quarter of 2019 oil production at the V. Filanovsky field increased by 18% year-on-year. The seventh well was commissioned at the second production platform of the field.
In the first quarter of 2019 oil production at the Yu. Korchagin field increased by 27% year-on-year as a result of drilling program at the field’s second development stage.
The development of the Yaregskoe field and Permian reservoir of the Usinskoe field, including the launch of new steam-generating capacities, allowed increasing high viscosity oil production in the first quarter of 2019 by 16% year-on-year, to 1.2 million tonnes.
The development of growth projects in West Siberia also continued. Overall oil and gas condensate production at the V. Vinogradov, Imilorskoe and Pyakyakhinskoe fields increased in the first quarter of 2019 by 14% year-on-year.
The share of the abovementioned projects in the LUKOIL Group’s oil production excluding the West Qurna-2 project amounted to 18% in the first quarter of 2019 compared to 15% in the first quarter of 2018.
Gas production, million cubic meters
| 1Q 2019 | 4Q 2018 | 1Q 2019 | 1Q 2018 | |
|---|---|---|---|---|
| 8,976 | 8,905 | Total | 8,976 | 7,999 |
| 4,407 | 4,405 | Russia | 4,407 | 4,496 |
| 4,386 | 4,385 | Subsidiaries | 4,386 | 4,473 |
| 21 | 20 | Share in affiliates | 21 | 23 |
| 4,569 | 4,500 | Outside of Russia | 4,569 | 3,503 |
| 4,406 | 4,341 | Subsidiaries | 4,406 | 3,343 |
| 163 | 159 | Share in affiliates | 163 | 160 |
In the first quarter of 2019, LUKOIL Group’s gas production was 9.0 billion cubic meters, which is 12% higher year-on-year. The main driver of gas production growth was the development of projects in Uzbekistan. As a result of the launch of the second stage of the Kandym gas processing plant, production in Uzbekistan in the first quarter of 2019 increased to 3.8 billion cubic meters (LUKOIL’s share) which is 33% higher year-on-year.
Refinery throughput, thousand tonnes
| 1Q 2019 | 4Q 2018 | 1Q 2019 | 1Q 2018 | |
|---|---|---|---|---|
| 16,668 | 17,002 | Total for LUKOIL Group refineries | 16,668 | 16,113 |
| 10,967 | 10,927 | Russia | 10,967 | 10,655 |
| 5,701 | 6,075 | Outside of Russia | 5,701 | 5,458 |
| 5,224 | 5,544 | Oil processing | 5,224 | 4,549 |
| 477 | 531 | Refined products processing | 477 | 909 |
| 1,588 | 1,634 | Third party refineries abroad | 1,588 | 1,660 |
In the first quarter of 2019 refinery throughput at LUKOIL Group’s refineries was 16.7 million tonnes, which in average daily terms is 0.2% higher quarter-on-quarter and 3.4% higher year-on-year.
Refinery throughput in Russia increased to 11.0 million tonnes, which in average daily terms is 2.6% higher quarter-on-quarter and 2.9% higher year-on-year. The increase was due to higher utilization rate of the Nizhny Novgorod refinery.
Lower quarter-on-quarter refinery throughput in Europe was driven by feedstock supply disruptions through the port of Novorossiysk due to weather conditions. Higher year-on-year refinery throughput in Europe was driven by the maintenance works at the refineries in Bulgaria and Italy in the first quarter of 2018.
