Lukoil production in 2017 up on gas development

Feb 15, 2018
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Russian oil producer Lukoil said its 2017 hydrocarbon production rose in 2017 on back of gas development projects, but its oil production was down in the fourth quarter.

Its hydrocarbon production in the fourth quarter of 2017 excluding West Qurna-2 project increased by 2.9 percent quarter-on-quarter to 2,284 thousand barrels of oil equivalent (boe) per day.

On an annual bases, this was up by 2.4 percent year-on-year to 2.234 million boe per day.

In the fourth quarter of 2017, the Lukoil Group’s gas production increased by 12.5 percent quarter-on-quarter to 8.2 billion cubic meters. In 2017 gas production increased by 15.7 percent year-on-year to 28.8 billion cubic meters.

Lukoil said it achieved significant progress in the Uzbekistan gas projects.

In the fourth quarter of 2017 production at Kandym and Gissar projects increased by 30.7 per cent quarter-on-quarter to 2.8 billion cubic meters. The growth was driven by the launch of new gas treatment facilities.

Gas production growth in Russia was mainly attributable to the launch of gas facilities at Pyakyakhinskoe field in January 2017.

Meanwhile, oil production excluding West Qurna-2 project slipped to 85.6 million tonnes in 2017 from 91.99 million tonnes in 2016.  This included fourth quarter production of 21.5 million tonnes.  

Lukoil said its 2017 oil production volumes and dynamics were defined by external limitations of Russian companies’ production volumes.

It produced a 21.2 per cent increase on a quarterly basis from the V. Filanovsky field, outperforming the planned output by 170,000 tonnes to reach 4.6 million tonnes.

It also raised production in a few other fields such as: Timan-Pechora, Yaregskoe, Usinskoe field.

Refinery throughput in the fourth quarter of 2017 was practically flat quarter-on-quarter and amounted to 17.3 million tonnes. Refinery throughput in 2017 increased by 1.8 percent year-on-year to 67.2 million tons.

In Russia, refinery throughput in Russia increased by 3.2 per cent year-on-year, which was mainly due to Volgograd refinery upgrade, as well as scheduled maintenance works at Nizhny Novgorod and Volgograd refineries in 2016.