A Review of the Nigerian Energy Industry

Russia pumps oil at 30-year high in October – energy ministry data

*Russia’s energy minister, Alexander Novak.

04 October 2018, News Wires — Russian oil output reached another 30-year high of 11.41 million barrels per day in October thanks to the largest oil companies, such as Rosneft and Lukoil, cranking up their production, Energy Ministry data showed.

This was up from 11.36 million bpd in September, a previous post-Soviet record high, and confirms data, cited by an industry source on Wednesday.

In tonnes, oil output reached 48.262 million versus 46.478 million tonnes in September. Reuters uses a tonne/barrel conversion ratio of 7.33.

According to a Reuters survey, OPEC has also boosted oil production in October to the highest since 2016, as higher output led by the United Arab Emirates and Libya more than offset a cut in Iranian shipments due to upcoming U.S. sanctions.

Saudi Arabia, the Organization of the Petroleum Exporting Countries’ (OPEC) top producer, has indicated it is concerned about potential oversupply, raising the prospect that its next production adjustment could be to rein in output.

Output increases have been facilitated by stronger oil prices as markets prepare for tighter supply once U.S. sanctions against Iran kick in later in November. In accordance with a global oil deal struck with OPEC and other leading oil producers in December 2016, Moscow pledged to cut its output by 300,000 bpd from 11.247 mln bpd reached in October that year.

Now Russia pumps around 460,000 bpd more than the 10.947 million barrels per day it had initially agreed to cut its production. In June, the participants of the deal agreed to get back to their 100 percent compliance level.

The energy ministry data showed that Rosneft, the world’s top listed oil producer by output, increased its production by 0.5 percent last month from September to 4 million bpd. Rosneft plans a gradual increase to oil production at so-called greenfield sites such as Yurubcheno-Tokhomskoye, Taas-Yuriakh and Suzun, brokerage Aton said in a note after meeting Rosneft executives last month.

The second-largest Russian oil producer Lukoil raised its output by 0.3 percent to 1.68 million bpd. Russian oil pipeline exports in October stood at 4.526 million bpd, up from 4.278 million bpd in September. Natural gas production was at 63.64 billion cubic metres (bcm) last month, or 2.05 bcm a day, versus 57.54 bcm in September.

  • Reuters
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