LUKOIL reduced 3-month hydrocarbon production by 7.6%

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AK&M 17 May 2021 19:21

Hydrocarbon production by PJSC LUKOIL decreased by 7.6% year-on-year to 2.15 million boed from 2.33 million boed (excluding the West Qurna-2 project), the company informed.

Compared with the fourth quarter of 2020, LUKOIL's average hydrocarbon production increased by 4.2%. The growth was attributable to the dynamics of the external limitations on oil production due to the OPEC+ agreement, as well as to the recovery of gas production in Uzbekistan, the company noted.

Oil production excluding the West Qurna-2 project was 18.8 million tonnes in the first quarter of 2021, which is 11.2% lower year-on-year in average daily terms.

To recap, the OPEC+ agreement concluded in April 2020 led to limitations on oil production by the Group in Russia and at certain international projects. Due to the agreement, oil production by the Group in Russia was cut in May 2020 by approximately 310 thousand barrels per day, or by 19%, as compared to the level of the first quarter of 2020, and has been gradually recovering subsequently. As a result, in the first quarter of 2021 oil production by the Group in Russia was approximately 130 thousand barrels per day higher compared to May 2020 level, the statement emphasizes.

In the first quarter of 2021, gas production increased in average daily terms by 5.6% year-on-year, to 8.8 bcm. In Russia, gas production decreased by 7.6% year-on-year in average daily terms to 4.3 bcm. Dynamics of gas production in Russia was driven by the change in associated petroleum gas production due to the external limitations on oil production. Outside Russia gas production increased by 22.1% year-on-year in average daily terms to 4.5 billion cubic meters. The growth was driven by a recovery in gas production in Uzbekistan after temporary decline in 2020 due to lower demand from China for gas produced in Uzbekistan amid the COVID-19 pandemic.

PJSC LUKOIL (tax number: 7708004767) is Russia's second largest oil producer. The largest block of the company's shares is owned by its management.