Russia has reduced oil production in May by more than 15%
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Russia has reduced oil production in May by more than 15%

2 June , 15:13EconomyPhoto: pixabay.com
Oil production in Russia in May decreased by 15.5% compared to the same month last year, to 39.7 million tons. Over the five months of this year, production amounted to almost 226.5 million tons, which is only 2.6% less than last year.

The highest production level for five months of this year was demonstrated by Rosneft, which since the beginning of the year has produced 77.5 million tons. Of these, 13.6 million - in May of this year. Lukoil’s production amounted to 32.8 million tons, including 5.6 million of them over the past month. Since the beginning of the year, Surgutneftegas has produced 24.6 million tons, of which 4.2 million over the past month.

Production of Gazprom Neft since the beginning of the year amounted to 16.3 million tons, including almost three million tons in May of this year. Tatneft produced 11.3 million tons, including over two million over the past month. The production of Bashneft, Slavneft, NOVATEK and RussNeft amounted to less than ten million tons from the beginning of the year, Interfax writes with reference to the analytical data of the Central Dispatch Department of the fuel and energy complex.

Other subsoil users, including enterprises with foreign investments, have produced 35.8 million tons of oil and gas condensate since the beginning of the year, including 6.3 million tons over the past month. Since the beginning of the year, operators of the Production Sharing Agreement have produced another 8.1 million tons of oil.

Oil export to non-CIS countries, despite a significant decrease in demand for raw materials and a global drop in prices up to negative quotations in April this year, in Russia decreased by 1% and reached 101.1 million tons. The export of raw materials over the past month decreased by 14.2%. The average daily shipments abroad during this period reached 4.1 million barrels. Oil supplies to Belarus from the beginning of the year fell by 47.7% to 3.64 million tons. At the same time, it was previously noted that the global cost of purchasing oil this year will be reduced by almost a third - up to $ 2.5 trillion. Oil revenues will fall by $ 180 billion due to lower energy prices.

Earlier, oil-producing countries signed an agreement to reduce production in order to stabilize commodity prices during reduced demand. The agreement to reduce production by 9.7 million barrels per day is valid until July, after which countries should increase production. However, Saudi Arabia and a number of countries sharing its position proposed not to increase production after July, as oil demand has not yet recovered. Russian oil companies offer to wait how the situation will develop in June.

Gas production in May decreased by 14.5% and amounted to 52.5 billion cubic meters. The decline in production since the beginning of the year was recorded at 9.2% - up to 293.2 billion cubic meters. Earlier, experts warned that there was a risk that gas prices would go negative , as was the case a month earlier. Already, energy prices have fallen to a historic low over the past 15 years and reached $ 27.3 per thousand cubic meters. Gazprom was not profitable to deliver it to Europe, where demand due to the suspension of enterprises during the pandemic fell, and the existing storage facilities are already 70% full. The established price is almost two times lower than gas sales in Russia, excluding 30% of its duty and almost four times lower than the cost of production.

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