Gazprom Neft's Q2 crude, condensate output down 4.6% on year on OPEC+ cuts

Moscow — Gazprom Neft's crude and condensate production was 1.24 million b/d in the second quarter, down 4.6% year on year and down 5.4% from the first quarter, according to financial and operational results released Aug. 20.

The Russian company's second-quarter results were impacted by the introduction of deeper cuts under the OPEC+ agreement from May.

For the first half of the year, crude and condensate output was down 0.5% on the year at 1.27 million b/d.

Hydrocarbons production in the second quarter averaged 1.94 million b/d of oil equivalent, down 1.6% on the year and down 4% from Q1. In the first half total hydrocarbons production averaged 1.98 million boe/d, up 2.1% on year.

Gazprom Neft said this was "due to production growth at Arcticgas fields and oil rim projects, Novoportovskoye field and in Orenburg region."

Arcticgas is a 50:50 joint venture owned by Gazprom Neft and Novatek that holds exploration and productions licenses for gas and liquids fields in the Yamal Nenets region of northern Russia.

Gazprom Neft's gas production was 10.59 Bcm in the second quarter, up 3.4% year on year but down 1.4% from Q1, which the company said was due to a fall in associated gas production as a result of output limitations under the OPEC+ agreement.

In the first half, total gas output was 21.33 Bcm, up 6% on the year, "due to new production wells put in use in Arсticgas, commissioning of gas processing and utilization production facilities at Novoportovskoye oil field, oil fields at GPN Vostok and in Orenburg region," the company said.

Gazprom Neft's refining throughput in Q2 was down 8% year on year and down 10.3% on the quarter to 9.22 million mt.

In the first half of 2020 throughput was 19.5 million mt, down 2.5% on the year, "due to petroleum products demand decline during COVID-19 pandemic and price environment on the international and domestic markets."