July 2, 2014 / 6:23 AM / 4 years ago

UPDATE 2-Russian daily oil production up in June, reversing downward trend

* Oil output up to 10.55 million bpd

* Production was falling since December

* Gas production down due to seasonal factor (Adds details, analysts, background)

By Katya Golubkova

MOSCOW, July 2 (Reuters) - Russian oil and gas condensate output reversed a downward trend in June, rising 0.2 percent from May to 10.55 million barrels per day (bpd), thanks to privately owned firms Lukoil and Bashneft, Energy Ministry data showed.

Russia is still the world’s biggest oil producer, followed by Saudi Arabia with production at 9.85 million bpd last month, according to a Reuters survey.

But unlike Riyadh, Moscow is pumping at near capacity and has started to explore for shale oil as a substitute for declining production in western Siberia, which still accounts for the bulk of Russia’s total crude output.

“The decline which lasted five months has stopped, but the tendencies remain the same - the reduction of the new deposits’ potential to substitute for falling production at old western Siberian fields,” said Valery Nesterov, an analyst at Sberbank CIB.

Russia in recent years has started production in remote new fields in eastern Siberia and the Arctic.

In May, Russia’s average daily oil output stood at 10.53 million bpd, down from a post-Soviet high of 10.63 million bpd in December.

The Energy Ministry data showed that Lukoil, where the largest shareholders are the company’s executives, and Bashneft, part of oil-to-telecoms group Sistema, led the rise last month with 1.3 percent and 1.8 percent gains, respectively.

Alexander Kornilov, an analyst with Alfa Bank, said the increase in Bashneft’s production - the highest by percentage points among Russian companies last month - was from the Trebs and Titov fields in northern Russia, developed with Lukoil.

Launched last year, the Trebs and Titov fields are considered among the biggest known onshore deposits in Russia.

Russia is offering different tax regimes for oil fields depending on their location, depletion, difficulty to extract and other conditions, as it attempts to keep oil production stable in the coming years.

In tonnes, Russian oil output reached 43.161 million last month, versus 44.535 million in May.

Gas production was at 46.44 billion cubic metres (bcm) last month or 1.55 bcm a day. Russia’s state-controlled gas producer Gazprom produced 30.39 bcm or 1.01 bcm per day.

In May, Russian daily natural gas production was at 1.708 bcm, with daily gas output at Gazprom, the world’s top gas producer, at 1.146 bcm.

Kornilov put the fall in gas production down to seasonal factors as consumption falls in the summer months.

TABLE-Russian June oil output up slightly from May

TABLE-Russian gas output fell 9.4 pct in June vs May

TABLE-Russian June seaborne oil exports fall 9.3 pct from May (Additional reporting by Natalia Chumakova, editing by Elizabeth Piper, Timothy Heritage and David Evans)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below