Rosneft Reports Higher 3Q Production
Russian state-run oil giant Rosneft said its total third-quarter production was up 8.8% year on year in at 5.674mn barrels of oil equivalent/day (boe/d). Liquids rose by 10.1% to 56.74mn metric tons (mt) while gas production rose by 3.5% to 16.66bn m3.
Factors for the gas increase were the acquisition of Bashneft assets in Q4 last year; new wells at Varyoganneftegaz in 2017; an increase in gas delivery volumes through the Tyumen compressor station after its reconstruction; and new wells and enhancing output at existing wells at Sibneftegaz.
Nine month production to September 2017 was up 9.7% to 5.72mn boe/d, of which liquids rose by 11% to 168.94mn mt, and gas rose by 3.1% to 50.86bn m3. Whilst being an oil giant, Rosneft earlier this year declared its aim of producing 100bn m3 gas by 2020 in Russia. It also noted that it completed its acquisition from Eni of a 30% interest in the giant offshore Egyptian gasfield Zohr last month. However draft US sanctions rules published October 31 may constrain Rosneft from upping that above a 33% threshold, even though it has an option from Eni to buy a further 5% stake to reach 35%.
It reports its quarterly results November 14.
Mark Smedley