Russian Rosneft's 2019 hydrocarbons output flat at 5.8 million boe/d

Moscow — Rosneft's hydrocarbons production reached 5.8 million barrels of oil equivalent per day in 2019, CEO Igor Sechin said Tuesday during a meeting with Russian President Vladimir Putin.

"Production volumes in 2019 were on the same level as the previous year; that is 285.5 million mt of hydrocarbons," Sechin said, according to a transcript of the meeting posted on the Kremlin website.

"Despite the worsening external environment, and a certain decrease in oil prices, around 7%, production results remained positive," Sechin said.

Russia's participation in the OPEC+ crude production agreement limited Rosneft's output in 2019.

"We complied with OPEC+ restrictions, and this led to some restriction of production. But this also affected prices on the market," Sechin said.

The boost to oil prices has been a positive for Russian oil companies, but they have also highlighted concerns over complying with the deal.

Those include missing out on market share, and difficulties planning investment programs while there is uncertainty over how much crude they will be allowed to produce.

Sechin did not provide a separate figure for oil production in 2019.

The company planned to invest Rb2 trillion ($31 billion) in stage one of its Vostok Oil project, with total investment in the project set to reach more than Rb 10 trillion, Sechin said.

Vostok Oil will combine production assets on the Taimyr Peninsula in Northern Russia and has a resource base of around 5 billion mt of oil, he said.

It includes the Vankor project, as well as other assets nearby including the Payakhskoye and West Irkinskoye fields. Rosneft is in talks with Indian companies on joining the project.

Rosneft also increased its seismic activity by 12.3% last year, carrying out 11,300 square kilometers.

Downstream results

Rosneft refined 110 million mt of crude and condensate in 2019, including 10 million mt at plants abroad, Sechin said.

The company also prolonged supply contracts with European customers.

"Long-term contracts for the supply of oil via Druzhba to Poland, the Czech Republic and Germany were extended," Sechin said.

Rosneft's investments totaled almost Rb3 trillion in 2019.

Sechin said Rosneft's costs are the lowest in the world, and its reserves are number one among public oil companies.