Rospan boosts Rosneft's Russian output

Russian oil producer Rosneft saw its gas output rise 7.3% in Q2 relative to Q1 2021, to 16.1bn m³, thanks mainly to the continuing ramping up of the 1 trillion m³ Rospan project in the prolific Yamal-Nenets region, it said August 13. 

First-half gas production was 31.1bn m³, which, excluding one-off effects such as assets sales, was a year on year increase of 9.1%,. Rosneft discovered 17 new deposits with АВ1С1+B2С2 hydrocarbon reserves amounting to 103mn boe. 

In all, 2Q 2021 production amounted to 452.6mn barrels of oil equivalent, up 5.6% on the quarter. Rosneft's oil production is limited by Russia's agreement with OPEC countries, although it is being raised gradually (see below).

Rosneft is also working on the Kharampur field where, as of end-June, the gas treatment plant was over 70% complete and the gas pipeline link was almost 75% complete.

As Gazprom holds the monopoly on pipeline exports, Rosneft sells all its gas within Russia, where it is cut off from the high prices in Asia and Europe. It does have some production overseas, such as a 30% stake in the Zohr field off Egypt, but there too the gas is sold at controlled prices.

Russia to set new liquids ouput record

The country is on track to set a new monthly crude and condensate output record of 11.6mn b/d next January 2022, Rystad Energy analysis shows. Russia's oil machine will then accelerate further to a peak of almost 12.3mn b/d in mid-2023.

Rystad's projections point to 2023 as a peak year also at an annual production level, expected at 12.2mn b/d. The country's short- and medium-term production growth will be driven by Rosneft and Gazprom Neft's greenfield projects.

Russia is also expected to set new records for crude oil alone. Its existing monthly record of 10.7mn b/d from April 2020 will be matched by May 2022, Rystad said.