Russian oil output dips toward OPEC+ quota limit: sources

MOSCOW – Russia’s oil and gas condensate production fell to 9.42 million barrels per day (bpd) during May 1 to 19 as a global deal on reducing output took effect, two sources familiar with the data told Reuters.

The deal on curbing crude output reached between the Organization of Petroleum Exporting Countries, Russia and other producers, a group known as OPEC+, took effect on May 1.

Gas condensate, a type of light oil not included in the OPEC+ pact, accounts for 700,000-800,000 bpd of Russia’s combined liquids production, so output of just oil was about 8.72 million bpd. That is close to its OPEC+ quota of 8.5 million bpd of oil.

Russia oil and condensates output was 11.35 million bpd in April and was averaging 9.43 million bpd earlier in May.

The energy ministry did not reply to a Reuters request for a comment.

The energy ministry told companies to cut production by 20% each, with no exceptions for big projects led by foreign firms. Regions with the highest oil output face the toughest burden because of the concentration of assets there.

 

Khanty-Mansiysk, one of Russia’s top producing provinces with output roughly the same as the U.S. state of Texas, cut producing by 15% to 4 million bpd. To protect jobs and revenues, it has asked other regions to shoulder some of its cuts.

But the energy ministry of Krasnoyarsk, another of Russia’s main oil provinces and home to the Vankor production area developed by Russia’s top oil company Rosneft, has said it was unlikely to help.

It told Reuters in a email that the region had been producing below levels it had originally planned to achieve before the OPEC+ cuts, due to depleting fields, and did not want to make extra reductions for other regions.

 

Reuters

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