Russian oil flows slip in April
Wire services
Russia’s oil production fell for a fourth month in row in April, in line with
pessimistic forecasts for the full year’s output, which it is expected to
fall for the first time in a decade, while exports rose on the back of
improved weather.
Energy Ministry data released yesterday showed production stood at 9.72
million barrels per day, down from 9.76 million bpd in March and over 2%
lower compared to the post-Soviet high of 9.93 million bpd in October last
year.
In absolute figures, March production was over 6 million barrels down from
October, Reuters reported.
Since October, oil production in Russia has been varying between decline and
stagnation, prompting many analysts to revise down their oil production
forecasts for 2008. A fall in output this year would come after a decade
during which production by the world's second largest oil exporter soared by
over a half from the post-Soviet low of 6 million bpd.
The companies blame mainly heavy taxation amid rising costs for the production
decline.
Russian authorities still expect production to grow by around 1% this year
after an increase of 2.3% in 2007 and much bigger spikes in previous years,
including a record 11% in 2003.
The data showed that Russian production sharing projects off the Pacific
island of Sakhalin, the key growth drivers in 2007, cut output further to
222,000 bpd in April from 228,000 bpd in March.
Major Siberian companies showed mixed results with the leading producer
Rosneft raising output to 2.29 million bpd from 2.28 million in March and
third-biggest producer TNK-BP also increasing production to 1.37 million
from 1.36 million.
But the second biggest company Lukoil cut output to 1.79 million from 1.80
million in the previous month, fourth-placed Surgut kept production flat at
1.23 million and fifth-placed Gazprom Neft cut output further to 618,000 bpd
from 627,000 bpd in the previous month.
Gazprom Neft was one of the worst performers year-on-year as its production
was down by over 6% versus April 2007 alongside Surgut, which cut output by
over 5%.
On the export front, supplies via the Transneft key pipeline system recovered
for a second month in row from the unusually low February levels to reach
4.52 million bpd, up from 4.23 million in March and 3.99 million in February.
Such a high export figure was last seen in September last year, when oil
companies rushed to evacuate more crude ahead of a spike in oil export
duties.
Traders have said May could be another record month in terms of exports as
Russian oil export duties will reach a new record of around $400 per tonne
from June following a new rise in global oil prices.
Russia's gas export monopoly Gazprom cut gas output to 48.03 billion cubic
metres from 50.48 Bcm in March, which was one day longer, as the country
needed less gas because of warm weather.
05 May 2008 00:29 GMT
| last updated:
05 May 2008 00:31 GMT
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