Output growth boosts Gazpromneft

Gazprom28 February 2014, News Wires – Russian player sees profit rise on higher production but revenues down on lower realisations

Higher production and sales through premium channels pushed profit up at Russia’s Gazpromneft last year.

The company posted a net profit of 177.92 billion Russian rubles ($4.92 billion) as against 176.3 billion a year earlier.

Overall revenues were down, however, from 1.52 trillion rubles to 1.5 trillion rubles as the average realised per-barrel price of oil dropped 2.3%. Sales through premium channels – its own retail network as well as to the aviation and bunkering markets – was up, however.

Production was up 4.2% to 457.42 million barrels of oil equivalent, largely due to increased oil output at its Orenburg and Priobskoye fields. There was also higher gas production at its Muravlenkovskoye field and the Samburgskoye field was launched.

Gazpromneft also applied high-technology applications at mature fields and posted higher volumes of associated gas utilisation.

Chairman Alexander Dyukov said the company’s main goals for this year include continuing with refinery modernisation as well as starting production at major international projects, including at Badra in Iraq. The company operates the Badra field on a 30% stake with the state holding Iraqi Oil Exploration Company on 25%, Korea Gas Corporation on 22.5%, Malaysia’s Petronas on 15% and Turkey’s TPAO on 7.5%.

Gazpromneft said earlier this month that it aims to start commercial production within the next few months, targeting an average of 15,000 barrels per day this year.

The explorer had originally pegged August 2013 for commercial start-up before delayingentry to production over security and geological challenges.

Gazpromneft said in early January it was close to bringing onstream the first 60,000-barrel-a-day capacity line of the 170,000-barrel central gathering facility it is building for the field in eastern Iraq.

Upstream reported in Friday’s paper edition that the company has agreed to pay for the exploration of two blocks in the Tomsk region — Lower Paninsky and Muromsky 2 — in exchange for the right to buy them at a later stage.


– Upstream

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