Russia's Gazprom Neft expects bumper growth in oil output, income

  • 12/17/2021
  • 00:00
  • 5
  • 0
  • 0
news-picture

MOSCOW, Dec 17 (Reuters) - Gazprom Neft (SIBN.MM), the oil arm of Russian energy firm Gazprom , expects oil and gas condensate output to grow by 2.5% this year and by a further 7% in 2022, Chief Executive Alexander Dyukov told reporters. Gazprom Neft, whose output has grown faster than its Russian peers, produced 96.1 million tonnes of oil equivalent of hydrocarbons in 2020, including 60.5 million tonnes of oil and gas condensate, or liquids. Oil wells left idle in the spring of 2020, when Russia and other members of the producer group OPEC+ slashed output to deal with plunging demand early in the pandemic, would resume production, Dyukov said. Last month, a company manager said Gazprom Neft had almost run out of spare production capacity. But Dyukov said Gazprom Neft had been expanding spare capacity to provide further output growth. "Everything is good, all is under control," he said. The company had already reached the level of output achieved at the end of 2019 before the pandemic, he said, adding that the company expected record income this year. The Russian firm saw the long-term sustainable range for oil prices at $50-$65 a barrel, he said. Brent was trading around $75 on Thursday. The company was working on a carbon capture and storage project in the Orenburg region near the border with Kazakhstan with capacity of 1 million tonnes per year, requiring investment of 30 billion roubles ($407 million), Dyukov said. ($1 = 73.6536 roubles)

مشاركة :