Russia sets new post-Soviet oil record

Russia sets new post-Soviet oil record

Thu Nov 3, 2016 8:39AM

The latest official figures show that Russia’s crude oil production set a new post-Soviet era record high in October,

Figures released by the country’s Energy Ministry showed that the average oil production last month reached 11.2 million barrels per day (mb/d). This was 0.1 percent higher than September and around 4 percent more than the same period last year.

In tons, Russia’s oil output in October rose to 47.386 million from 45.483 million in September, Reuters reported.

Ministry data showed production by almost all key producers increased during the period. Rosneft increased production by 0.1 percent, Lukoil’s output rose by 0.9 percent, but Surgutneftegaz cut production by 0.3 percent.

The rise in Russian crude output has been supported by an increase in drilling as companies capitalize on a weaker rouble, Reuters added.

Russian oil companies make most of their revenue in US dollars, while their domestic costs are in rubles.

Other figures also show that natural gas production in Russia rose to 61.07 billion cubic meters (bcm) or 1.97 bcm per day in October from 51.33 bcm in September.

The ministry expects a rise in oil output in 2017 to 548 million tons, or 11 mb/d, due to new fields coming on stream, Reuters added.

This is while oilprice.com quoted commodity analysts at Goldman Sachs as predicting that Russia’s oil output will hit 11.7 mb/d in 2017.

Meanwhile, Russia Today in a report on its website quoted experts as saying the rise in Russian oil production had put the government in a predicament because of continued negotiations with other top producers on capping the output level to boost prices.

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