BAKU, Azerbaijan, Nov.10
By Leman Zeynalova – Trend:
Russian LUKOIL company has reduced hydrocarbon output due to OPEC+ deal in the first nine months of 2020 and in Q3, Trend reports with reference to the company.
The company’s hydrocarbon production excluding the West Qurna-2 averaged 2,065 kboe per day in the first nine months of 2020, 11.6 percent less as compared to the same period of 2019.
In the third quarter of 2020 hydrocarbon production was 1,885 kboe per day, which is 4.9 percent lower quarter-on-quarter. Production was reduced due to the new OPEC+ agreement and a decrease in gas supply from Uzbekistan to China, that were driven by a negative impact of the COVID-19 pandemic on hydrocarbon demand.
Oil production excluding the West Qurna-2 project was 58.5 million tons for the nine months of 2020, which is 9 percent lower year-on-year. In the third quarter of 2020 oil production decreased by 3 percent quarter-on-quarter, to 18.2 million tons. Oil production dynamics was driven by the OPEC+ agreement concluded in April 2020, which led to limitations on oil production by the Group in Russia and at certain international projects. In particular, due to the agreement crude oil production by the Group in Russia was cut in May 2020 by approximately 310 thousand barrels per day, or by 19 percent, as compared to the level of the first quarter of 2020. Crude oil production in Russia was subsequently increased by approximately 20 thousand barrels per day in July and incrementally by 60 thousand barrels per day in August.
Despite a sharp decrease in oil prices and external limitations on production volumes, active development of the priority projects continued. In particular, in West Siberia total oil and gas condensate production for the nine months of 2020 at the V. Vinogradov, Imilorskoye, Sredne-Nazymskoye and Pyakyakhinskoye fields increased by 23.6 percent year-on-year and exceeded 3.1 million tons.
High viscosity oil production at the Yaregskoye field and Permian reservoir of the Usinskoye field for the nine months of 2020 increased by 5.1 percent year-on-year, to 3.9 million tons.
Follow the author on Twitter: @Lyaman_Zeyn