Rosneft in the II Quarter Reduced the Production of Liquid Hydrocarbons by 2.2% due to Restrictions of the Russian Federation
It amounted to 3.9 million bpd
Rosneft in the second quarter reduced the production of liquid hydrocarbons by 2.2%, to 3.9 million barrels per day (b / d) due to restrictions on oil production in Russia, in the first half of the year it produced 4 million b / d, according to company message.
Gas production by the company in the first half of the year increased by 31.8% to 1.5 million barrels. n. e. per day or 43.7 billion cubic meters. m., and in the second quarter – decreased by 8.7%, to 1.4 million b. n. e. per day or 21 billion cubic meters. m due to restrictions on oil production and repairs. As a result, Rosneft increased hydrocarbon production by 12.7% in the first half of the year, to 5.5 million barrels of oil equivalent per day, and reduced it by 4% in the second quarter.
“Production of liquid hydrocarbons in the first half of 2023 amounted to 4 million bpd (97 million tons). Due to the restriction of oil production in the Russian Federation since March 2023, the volume of liquid hydrocarbon production in the second quarter of 2023 was reduced by 2.2% to 3.9 million bpd (48.2 million tons),” the report says.
“Daily production of liquid hydrocarbons increased by almost 7%. However, in the second quarter, taking into account external production restrictions, the company was forced to reduce production volumes. I note that Rosneft has been limiting oil production in one form or another since 2017, which does not allow to fully realize their own potential,” the company’s CEO Igor Sechin said in the message.
The increase in gas production is due to an increase in production volumes at existing projects, as well as the launch of new gas projects in the Yamalo-Nenets Autonomous District in 2022.
“Against the backdrop of the successful implementation of existing and the launch of new projects, the company in the first half of 2023 demonstrated a high growth dynamics in its operating indicators. In particular, Rosneft came out on top among independent gas producers, increasing production by almost a third,” Sechin noted.
Oil refining
Rosneft also increased oil refining by 9.2% in the first half of the year, to 44.1 million tons. In the second quarter of 2023, refineries in the Russian Federation processed 21.5 million tons of oil, which is 5.1% lower qoq and mainly due to seasonal repairs, the report says.
The company notes that it is systematically working to develop domestic technologies and import substitution, supplying its plants with its own catalysts for the production of motor fuel.
In the first half of the year, the company produced 780 tons of diesel fuel hydrotreating catalysts and protective layer catalysts, 75% of which were supplied to Rosneft’s own refineries, another 25% – to the external market. The company’s enterprises also produced 175 tons of reforming catalysts and 55 tons of hydrogen production catalysts, reactivated 340 tons of regenerated diesel fuel hydrotreating catalysts.
In March, Russia began a voluntary reduction in oil production by 500,000 barrels per day from the February average. The validity period of this reduction was extended several times – first until June inclusive, then until the end of 2023. And after the OPEC + meeting, which took place on June 4 in Vienna, the decision to voluntarily reduce production was extended until the end of 2024.
In August, the Russian Federation will reduce oil supplies to world markets by 500,000 bpd in addition to its obligations to reduce production; in September, it intends to reduce exports by 300,000 bpd.
