Rosneft Q4 2019 average liquids production down 2.5% on year to 4.67 mil b/d

Moscow — Russia's largest crude producer Rosneft said on Wednesday that its average liquids output in the fourth quarter of 2019 was down 2.5% year on year, but up 0.3% quarter on quarter at 58.03 million mt, or around 4.67 million b/d.

The company, whcih is subject to output restrictions under the OPEC+ production cut agreement, produced a total of 230.25 million mt, or around 4.67 million b/d of liquids in 2019, flat on year, the company said.

Rosneft said that production from fields launched since 2016 accounted for 397,000b/d, or 8.5% of output in the fourth quarter.

These projects include Suzunskoye, Vostochno-Messoyakhskoye, Yurubcheno-Tokhomskoye, Kondinskoye, Tagulskoye, Russkoye, Kuyumbinskoye fields, stage 2 of Srednebotuobinskoye field and Zapadno-Erginskoye.

Crude production contributed to daily average hydrocarbon output of 5.81 million boe/d in the fourth quarter, down 2.1% year on year and up 1.3% quarter on quarter.

Rosneft said that the q-o-q growth was "mainly driven by the introduction of advanced technologies to engage hydrocarbon reserves from low-permeable reservoirs into active development, along with the oil recovery coefficient increase."

Production also grew at new large projects, including Srednebotuobinskoye, Vostochno-Messoyakhskoye and Kuyumbinskoye.

Total hydrocarbons output for the whole of 2019 was 5.791 million boe/d, down 0.1% year on year.

Gas, refining results

Rosneft's gas production totaled 17.22 Bcm in the fourth quarter, down 0.5% year on year and up 5.6% quarter on quarter.

"The q-o-q increase was mainly attributable to the scheduled preventive repairs conducted in Q3 2019 both at the company's own production facilities and at Sibur gas processing plants, along with a seasonal increase in demand in the autumn-winter period," said Rosneft.

Rosneft's refining throughput fell 4.1% year on year in the fourth quarter, totaling 28.33 million mt. This was down 5.8% quarter on quarter, primarily due to Rosneft's operations in Russia, where refining fell 4.8% on year in the fourth quarter.

"The reduction in throughput volumes at the company's refineries in Russia was caused by scheduled maintenance works and processing units optimization under the current petroleum products demand," Rosneft said.

Rosneft refined 2.82 million mt of oil at refineries outside Russia in Q4, up 2.9% year on year.

A reserves audit carried out by DeGolyer and MacNaughton indicated that Rosneft's SEC proven hydrocarbons reserves as of December 31 increased by 1% to 42 billion boe, with a proven hydrocarbons replacement ration of 129%.