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    Egyptian Field Raises Rosneft’s Gas Output in Q1

Summary

The Russian giant expects Zohr's production to continue to expand.

by: Dalga Khatinoglu

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Egyptian Field Raises Rosneft’s Gas Output in Q1

Rosneft announced May 13 that it increased gas production by 1.5% year-on-year to 17.12bn m3 in the first quarter 2019.

“Production growth was mainly driven by increased capacity of the Egyptian Zohr project and commissioning of new wells with high gas factor at the Yem-Egovskoye field at Nyaganneftegaz in 2018,” the Russian state-controlled oil and gas company said in a statement.

Output from Rosneft’s Egyptian offshore field stood at 64mn m3/d at the end of Q12019. The African project is expected to push to 76mn m3/d by the end of the year.

“In Q1 2019 one production well and two technological lines of the gas processing facility were put into operation. 1Q production reached 5.5bn m3 (970mn m3 in the company’s share),” the statement continued. Rosneft has 30% stake in the Egyptian field, which has reserves of 850bn m3.

Rosneft also reported liquids output rose 3.9% to reach 4.74mn b/d, helping Q1 revenues to grow by 20.6% year on year to a total of RUB2,077bn ($31.9bn). Petroleum product sales (+7.6%) and crude oil price growth in ruble terms (+12.7%) on the back of the Russian currency depreciation also helped. The company’s net income across January-March increased by 61.7% to RUB131bn ($1.9bn).